Indicate whether the followings statements are ‘True’ or ‘False’.

(i) Activity based costing (ABC) system is applicable only for allocation of manufacturing overheads.

(ii) ABC system has the potential of eliminating cost distortion.

(iii) Higher-volume products would have higher share of indirect costs in ABC system.

(iv) ABC system uses cost centres for accumulating costs.
(v) Cost drivers are significant determinants of costs in ABC system.
(vi) Duration drivers represent the number of times an activity is performed.
(vii) Transaction drivers represent the amount of time required to perform an activity.
(viii) Intensity drivers are used to charge directly for the resources used each time an activity is performed.
(ix) Practical capacity is higher than theoretical capacity.
(x) Activity based costing prices products.
(xi) ABC system is appropriate only for manufacturing firms.
(xii) ABC based costing systems are more costly than traditional costing systems.