The next 3 questions are based on the information below. Alliance Insurance Company (the Company) provides a range of insurance products. It has two classes (or segments) of customers: residential and commercial. A significant portion of the Company's operating cost is incurred by its billing department (BD). BD determines the amount that each customer should pay on their bill, prints the bill and then sends the bill out to customers. BD has not been very successful in getting its customers to accept on-line billing. All residential and commercial customers receive a single bill every year. However, the length of each bill varies by customer class. A commercial customer's bill is typically twice as long as a residential customer's bill. Until recently, BD had been using what could be labelled a conventional costing system. All costs in the department are indirect and were allocated to each class of customers on the basis of the number of customers. In other words, since about 50% of the company's customers are residential customers and 50% are commercial customers, therefore 50% of BD's costs would be allocated to the residential class and 50% of BD's costs would be allocated to the commercial class under the conventional costing system. In 2020, BD decided to adopt an Activity-Based-Costing (ABC) system to allocate all its costs to its two classes of customers. The ABC system was introduced just prior to the end of 2020. For the year ended 31 December 2021, BD allocated its costs under both the conventional system and the ABC system to allow it to compare the results of the two systems. From 2022 onwards, it used only the ABC system. To design the ABC system, a series of interviews were conducted with the appropriate staff at BD. Following the interviews, four key activities and hence four activity cost pools within BD were identified: (1) bill calculation; (2) bill verification; (3) bill printing; and (4) bill mailing. Question 23 4 pts In 2022. the Company only used the ABC system. The Company estimates that the implementation of the ABC system would help it achieve higher overall organisational-level profit in 2022 (compared to if it had persisted with the conventional cost allocation system). What are 2 possible ways that the ABC system would help the Company achieve higher profits in 2022? Explain. Edit View Insert Format Tools Table 12pt Paragraph BIUA Lv v P O words