Penguin Inc. managers are considering replacing the organization's traditional costing system with an activity-based costing system. Which of the following statements apply to this transition? (Check all that apply.)

1 point

The new system will have many more categories reflecting overhead costs than the original system.

Managers perceive a need for more accurate cost information.

Current overhead estimates are sufficient to facilitate and influence decisions.

Managers perceive a need for more accurate direct materials and direct labor information.