Consider the Following Statements

Multiple Choice

Consider the following statements. Traditional 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