You wish to persuade your board of directors that company where you work would benefit from implementing activity$-$

based costing $($ABC$).$

Which two of the following are valid arguments?

A$.$ Pricing decisions can be improved because they will be based on more accurate cost data.

B$.$ It will be possible to allocate all the overhead costs to specific activities.

C$.$ The results of the ABC costing exercise will be easy to explain to all the relevant

stakeholders.

D$.$ It will be easier to identify which product lines are loss making.

E$.$ Implementing ABC will be expensive, but the benefits always justify the costs.