9. The justification for not using a departmental rate for overhead cost assignment is that it increases accuracy.
10. Non-unit-based drivers are factors that measure the demands that cost objects place on activities.
11. If overhead is a significant proportion of the unit manufacturing costs, the distortion caused by using multi-level drivers can be serious.
12. Activity-based costing uses only unit-level drivers for costing.
13. The activity-based cost assignment is the most accurate method of costing because it follows a cause-and-effect pattern of overhead consumption.
14. An activity-based costing system traces costs to activities and then to products and other cost objects.
15. The first step in designing an activity-based costing system is to identify activities.
16. A list of the activities identified in the design of an activity-based system is called an activity inventory.
17. Activity attributes are nonfinancial and financial information items that describe individual activities.
18. Product classification attributes define and describe activities and are the basis for product classification.