Barry and Brothers Inc. produces technical equipment. The production is triggered based on customer order. To price the orders more accurately, they have recently introduced the ABC costing system. In one of its indirect cost pools, quality control that relate to a setup and energy costs that relate to a number of units in a batch are pooled together. Costs in this pool are allocated using the number of customer orders for the easiness of costing operations. Based on the information provided, which of the following arguments is valid? O The company has clearly failed to identify as many direct costs as is economically feasible The company has unnecessarily wasted resources by classifying quality control and energy costs as they could have been considered as direct costs. The company has failed to use the correct cost driver as the cost-allocation base for energy costs These two cost types are homogeneous, they are correctly pooled together as they have a similar cause-and-effect relationship with the single cost driver that is used as the cost- allocation base