I. Departmental costing systems are a refinement of ABC systems. II. ABC systems are useful in manufacturing, but not in merchandising or service industries. III. ABC systems can eliminate cost distortions because ABC develops cost drivers that have a cause-and- effect relationship with the activities performed. 1. 1, II, and III are correct. 2. Il and III only are correct. 3. III only is correct. 4. None of the listed choices is correct.

I. Departmental costing systems are a refinement of ABC systems. II. ABC systems are useful in manufacturing, but not in merchandising or service industries. III. ABC systems can eliminate cost distortions because ABC develops cost drivers that have a cause-and- effect relationship with the activities performed. 1. 1, II, and III are correct. 2. Il and III only are correct. 3. III only is correct. 4. None of the listed choices is correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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