Consider the Following Statements

question 55

Multiple Choice

Consider the following statements.Conventional costing systems can produce distorted product costs if:
i.overheads are driven by non-volume factors
ii.overheads are a minor part of the product cost
iii.it fails to recognise non-manufacturing costs as product costs
Which of the statements is true?

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

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