Consider the Following Statements About Activity-Based Costing and Its Use

Multiple Choice

Consider the following statements about activity-based costing and its use in pricing:
I. A company that uses target costing generally would have little need for activity-based costing.
II. Companies that use cost-plus pricing methods would have little need for activity-based costing.
III. The use of activity-based costing will often lead to better pricing decisions by managers.
Which of the above statements is (are) true?

A) I only.
B) II only.
C) III only.
D) I and III.
E) I, II, and III.