Which of the following combinations is correct?

Consider the following statements relating to activity-based costing (ABC) in a manufacturing environment:

(i) ABC eliminates the use of volume as a means of measuring costs

(ii) More accurate cost estimates will always be produced using ABC than absorption costing

Which of the following combinations is correct?
A . Statement (i) = True, Statement (ii) = True
B . Statement (i) = False, Statement (ii) = False
C . Statement (i) = True, Statement (ii) = False
D . Statement (i) = False, Statement (ii) = True

View Answer

Answer: B