Which of the following statements about activity-based costing (ABC) is false? Group of answer choices Activity-based costing is useful for allocating marketing and distribution costs. Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only multiple products rather than single product. Activity-based costing differs from traditional costing systems in that it allocates costs according to the rates at which a product consumes different activities. In activity-based costing, all overhead costs are accumulated into a single cost pool and a single cost driver is identified to allocate costs to the cost objects.

Product costs under variable costing are typically: Group of answer choices A. higher than under absorption costing B. lower than under absorption costing C. the same as with absorption costing D. higher than absorption costing when inventory increases

Companies that produce a variety of products need a costing system that allocates costs based on the varying resource demands of each product. Activity-based costing systems identify activities as the cost objects. An activity-based system (ABC) identifies activities as fundamental cost objects. Costs are then assigned to the activities and allocated to the individual products. Unlike simple systems, ABC systems calculate costs of individual activities to cost products. What is activity-based management and how can it be used to improve the profitability of a company. In this discussion, be sure to compare and contrast your understanding of activity-based costing.   Identify a simple product and explain the different cost drivers used in making that product.

Why would a business that uses traditional costing systems consider implementing activity-based costing? Discuss the following in your answer: Problems with traditional costing systems in a modern manufacturing environment. Whether the benefits of activity-based costing always outweigh the costs.