Consider the Following Statements About Support Department Cost Allocations

Multiple Choice

Consider the following statements about support department cost allocations.
i. In a modern manufacturing environment, it is not necessary to allocate support department costs.
ii. Support department cost allocations continue to be necessary when a highly automated system is in use.
iii. In a flexible manufacturing system, the need to allocate costs diminishes because more costs have become traceable to the product.
Which statement/s is/are true?

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