A. True or False / Traditionally, Manufacturing Company allocated manufacturing overhead based on machine hours to products A and B. For 2019, the allocations to products A and B, would be $175,000 and $150,000, respectively. Based on careful analysis, if overhead was allocated based on activity based costing (ABC) to products A and B, it would be $130,000 and $195,000, respectively. If the company implements ABC costing, Product B will be viewed as more profitable than before.

B. True or False / Using just-in-time processing usually increases carrying costs and risks of spoilage and obsolescence related to inventories.

C. True or False / Just-in-time processing is likely to be a more realistic option if the companys vendors are located nearby, instead of throughout the country.