Question: PAC is considering to adopt Activity-based costing systems. Consider the following statements, Comventional costing systems can produce distorted product costs if: 1. overheads are driven

PAC is considering to adopt Activity-based costing systems. Consider the following statements, Comventional costing systems can produce distorted product costs if: 1. overheads are driven by non-volume factors. 2. overheads are a minor part of the product cost. 3. it fails to recognise non-manufacturing costs as product costs. Which of the statements is true? a. 1 b. 2 c. 3 d. 1 and 3 e. 2 and 3

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