you are the owner of a bike shop that specializes in custom-built bikes. Your sales manager and chief finacial officer(CFO) want to talk to you about switching product costung allocation methods. The sales manager recommends switching from a single plant-wide factory overhead rate to multiple procuction department overhead rate. your CFO recimmends activity-based costing with 4 cost pools.

1. what are the pros and cons of the three differenr cost allocation methods?

2. what are the possible product cost fistortions under each cost allocation method?

3. what recommendation will you impliment and why?