PAB is considering to adopt an Activity-based costing systems. ABC identifies cost on the basis of activities & assigns costs to products & services according to the actual consumption. Consider the following statements. PAB is considering to adopt an Activity-based costing systems. ABC identifies cost on the basis of activities & assigns costs to products & services according to the actual consumption. Consider the following statements. 1. As the activity-based system accuracy increases, the cost of inferior decisions based on distorted product costs decreases. 2. As the activity-based system accuracy increases, the costs of implementing and operating the system increase. 3. As the activity-based system accuracy increases, the total cost from inferior decisions and the cost to implement and operate the system decrease. Which of the statements is true? a. 1 b. 2 c. 3 d. Some other alternative not listed here e. 1 and 3