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 and explain)

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

b. Managers perceive a need for more accurate cost information.

c. Current overhead estimates are sufficient to facilitate and influence decisions.

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