What from the upcoming options will be made when using the traditional costing method, relatively to using the ABC costing method?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 20E
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What from the upcoming options will be made when using the traditional costing method, relatively to using the ABC costing method?

Pick only one answer –

  1. Underestimating the products cost with products that have low direct costs, and one-time products that are produced in small series.
  2. A tight costing connection between the cost and the factor causing it.
  3. All the answers are incorect.
  4. A higher cost for implementing and managing the accounts managing system, the general and the costing.
  5. Overestimating the products cost with products that have low direct costs, and one-time products that are produced in small series.
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