Otto leads a team of workers at an advertising firm. Recently, one of his subordinates, Lucy, suggested that the team celebrate a major milestone by taking the afternoon off to go to a baseball game together at the company's expense. Otto cannot approve this request, since the team's budget for entertainment is not enough to pay for everyone. What should Otto say to Lucy when he meets with her to discuss her proposal

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