10. A favourable labour variance combines with an adverse wage rate variance could be caused by: a) Higher unemployment in local economy b) Cheaper raw materials imported due to exchange rate depreciation c) Introduction of performance related pay d) Cost cutting exercises implemented by management 11. Which of the following statements is true about activity based costing systems (ABC)? a) ABC systems cost less to run than absorption costing ones b) ABC costs are not as good for making decisions as absorption costs c) ABC costs are more accurate than absorption ones d) Absorption costing is a more complex system than ABC