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
Answer: B
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