If Fowler Corporation Changes to Activity-Based Costing (ABC), This Method

Multiple Choice

If Fowler Corporation changes to activity-based costing (ABC) , this method normally results in:

A) Equalizing setup costs for all product lines.
B) Substantially lower unit costs for low-volume products than is reported by traditional product costing.
C) Decreased setup costs being charged to low-volume products.
D) Substantially greater unit costs for low-volume products than are reported by traditional product costing.
E) None of the answer choices is correct.