True or False:

1. In every costing system, the total cost incurred by the business remains the same; just the distribution of costs over the cost units changes.

2. Traditional cost systems are more expensive to implement than Activity-based cost systems.

3. Activity-based costing is preferable in a system with a large direct labor cost as a percentage of the total product cost.

4. Under variable costing, a unit of product includes direct material, direct labor, variable manufacturing overheads, and fixed manufacturing overheads.

5. The overhead rate is predetermined based on the previous years overhead expenses against the estimated production.