"Profit-sharing plans provide a more direct incentive in small firms than in large firms. are practically impossible to use successfully in small firms. are similar to individual incentive plans in their motivational effect. are an expensive fringe benefit for small firms, costing 40 percent of payroll.

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above