Consider the following statements.i.Product diversity creates problems in product costing because diverse products tend to utilise productive activities in very different ways
Ii)Overhead costs that are not incurred at the unit level create product-costing problems because they do not vary with measures such as direct labour hours or machine hours.
Iii)Product diversity exists when a single product,such as pens,are made in different colours.Which of the above statement/s is/are true?
A) i
B) ii
C) i and ii
D) i and iii

Question

Quizplus · Accepted Answer

Statement i is true because different products may require different processes or use different amounts of resources, which can make it difficult to allocate costs accurately. Statement ii is also true because overhead costs, such as rent or salaries, are not directly tied to a specific product and can therefore be difficult to assign to individual products. Statement iii is not entirely accurate as product diversity can refer to more than just different colors of a single product.

Consider the Following Statements