Which of the following statements is/are true?
i.Both conventional cost systems and ABC focus on resources supplied
ii.Plant and equipment is an example of a committed resource under an ABC system.
iii.Committed resources always equal resources used.
A) i
B) ii
C) iii
D) ii and iii

Question

Quizplus · Accepted Answer

i. This statement is partially true. While both conventional cost systems and ABC focus on resources, ABC focuses specifically on the activities and processes that consume those resources, while conventional systems may only look at the total costs of each department.
ii. This statement is true. In an ABC system, plant and equipment would be considered a committed resource as it is a long-term investment that cannot be easily reallocated to other activities or products.
iii. This statement is false. Committed resources do not always equal resources used, as there may be unused or underutilized resources due to inefficiencies or changes in demand.

Which of the Following Statements Is/are True