Which of the following statements concerning the activity based costing (ABC) template is correct? (answers assume the two column approach taught in class is used)

A.

If a company has only two cost objects, the total cost distortion for the two objects will always be equal and offsetting.

B.

If the cost object is being overcosted, the total cost calculated in the ABC column will be higher than the total cost calculated in the traditional column.

C.

To determine cost distortion, you can compare the total direct product costs attributable to the cost object under traditional costing and ABC.

D.

The numerator in the traditional POHR calculation is greater the sum of the numerators in the ABC POHR calculations.

E.

Direct material and direct labor for a specific cost object differ between the traditional and the ABC columns.