Joaquín, a human resources manager, has to lay off either of two department heads, Coral or Mike, because the downsizing process that is going on in the organization calls for the merging of their two departments. However, Joaquín cannot decide whom to lay off, since they are both excellent managers and he does not want to dismiss either of them. In this case, Joaquín is having a difficult time making a decision due to experiencing conflict.

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