High Violet Inc. (the company) manufactures multiple products that are very different from each other. Consider the following scenario where the company's management accountant makes the following error: He has misclassified one of the company's material cost (M) as a direct cost with respect to each unit of output produced. Some of the characteristics of M: Used in the production of all products produced by the company Physically traceable to the units of output produced Not economically feasible to trace to the units of output produced . Which of the following represents the likely impact of the misclassification of M on the company? 1. Inaccurate assignment of M to the different units of output produced 2. Inaccurate calculation of product profitability of the company's products 3. Inappropriate / inefficient use of staff (who is in charge of cost assignment)'s time Statement 1 only Statement 3 only Statement 1 and 3 only Statement 1 and only Statement 1.2 and 3