Consider the following statements concerning value chain analysis: 1. It recognises the total life-cycle concept. 2. It analyses the business into a sequence of value-creating activities. 3. Its application is confined to manufacturing businesses. 4. It is closely linked to absorption costing. Which of the above statements are correct? A. 1 and 2 B. 3 and 4 C. 1 and 4 D. 2 and 3 Which type of quality cost is the cost incurred as a result of staff training on quality issues? A. Internal failure costs B. Prevention costs C. Appraisal costs D. External failure costs What is the validity of the following statements? (1) Modern business is characterised by a low level of indirect cost relative to direct cost. (2) Modern business is characterised by a capital intensive production. A Fill in the blank spaces below using the drop-down menus provided. With the traditional approach to full costing, overheads are allocated or apportioned to into With the ABC approach, overheads are analysed The objective of activity-based costing (ABC) is to derive the cost of production. A. full B. marginal C. strategic D. relevant