Abel company must write-down its inventory by $30,000 to the net realizable value of $450,000 at december 31, 2016. what is the effect of this writedown on the year 2016 financial statements? decrease accounts payable. decrease cost of goods sold. increase pretax income. decrease ending inventory on the balance sheet.

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