Indicate Whether Each of the Following Statements Is True or False

Essay

Indicate whether each of the following statements is true or false.
Use of an activity-based costing system may identify products that are overcosted or undercosted by a traditional system.______
Use of an activity-based costing system may prove to company managers that the company is incurring losses on some products they believed to be profitable.______
The starting point for target pricing is to determine the costs that are incurred in making the product.______
Use of a traditional product costing system may put a company at a competitive advantage by overcosting some products.______
Activity-based costing results could lead managers of a company to decide to eliminate some products.______