Which of the following statements is correct with regard to Activity Based Costing (ABC)?

A.

Only manufacturing companies use ABC.

B.

The choice to use ABC impacts the calculation of direct product costs.

C.

The benefit of using ABC is greater for companies that have established information technology systems.

D.

If the consumption ratios using the traditional method differ from the consumption ratios using ABC, cost distortion will exist.

E.

ABC only uses transaction based cost drivers in the calculation of predetermined manufacturing overhead rates.