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

A.

ABC recognizes that not all manufacturing overhead activities should be categorized as unit level activities.

B.

If the consumption ratios using the traditional method are different from the consumption ratios usingABC, cost distortion will exist.

C.

The costs of implementing ABC are generally lower for companies that have established information technology systems.

D.

The choice to use ABC does not impact the calculation of direct product costs.

E.

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