Consider the Following Statements

question 11

Multiple Choice

Consider the following statements.i.Product diversity creates problems in product costing because diverse products tend to utilise productive activities in very different ways
Ii) Overhead costs that are not incurred at the unit level create product-costing problems because they do not vary with measures such as direct labour hours or machine hours.
Iii) Product diversity exists when a single product,such as pens,are made in different colours.Which of the above statement/s is/are true?

• A) i
• B) ii
• C) i and ii
• D) i and iii

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Definitions:

Competitive Firms

Businesses operating in a market where they must compete with others for the same customers, without having significant control over market prices.

Monopolistic Firms

Companies that have the majority of market share within their industry, allowing them to affect pricing and market conditions.

Absent

Not present or missing in a particular place or situation.

Industry Structure

The organization or arrangement of the market within an industry, often characterized by the number of firms, product differentiation, and barriers to entry.