Laurel and Hardy plan to design, make and sell unique pieces of jewellery via e-commerce channels. They are currently designing a costing system that is appropriate for their business. Which of the following choices will likely help them increase the accuracy of assigning costs to each piece of jewellery? Ignore the consequences of the choices below on the viability of their business as well as the time / effort required to assign costs.

1. Classify more costs as direct costs instead of indirect costs

2. Allocate all indirect costs to each unique piece of jewellery using a single allocation base instead of using multiple allocation bases

3. Use allocation base(s) that are qualitative instead of quantitative / measurable in nature

4. Ensure each indirect cost pool contains homogenous (or similar) cost items

Group of answer choices

Statement 1 and 4 only

Statement 1 only

Statement 3 only

Statement 4 only

Statement 1 and 2 only