There are two main problems which tend to occur when traditional (simple) costing methods are used to provide information for management decision purposes. These two problems include: (i) product cost distortions, or cross-subsidies; and (ii) the exclusiveness of traditional product costing (i.e. the treatment of non-manufacturing costs differ between traditional cost systems and ABC systems).

Discuss the above statement and explain how it is relevant to the case in the video.