Consider the following statements. Activity-based costing is more difficult in a service business because:

1. service businesses have a low proportion of overhead in their total costs.
2. service businesses tend to have a higher level of facility costs than most manufacturers.
3. it is often difficult to identify service activities because they are non-repetitive.

Which of the above statements is true?

Select one:

a. i, ii and iii

b. ii and iii

c. i

d. ii