Consider the Following Statements About Relevant Costing and Activity-Based Costing

Multiple Choice

Consider the following statements about relevant costing and activity-based costing:
I. The concept of relevant costs and benefits cannot be used in conjunction with an activity-based costing system.
II. The concept of relevant costs and benefits must be modified for use with an activity-based costing system.
III. Generally speaking, the decision maker can better associate relevant costs with the activities that drive them under an activity-based costing system than under a conventional product-costing system.
Which of the above statements is (are) true?

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