When an account is written off using the allowance method, accounts receivable decreases and the allowance account decreases. decreases and the allowance account increases. increases and the allowance account increases. is unchanged and the allowance account increases.

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above