50. The following statements have been made about activity-based costing. i. ii. 111. iv. Unlike traditional absorption costing, ABC identifies variable overhead costs for allocation to product cost. In a system of ABC, for costs that vary with production level, the most suitable cost driver is likely to be direct labor hours or machine hours. In a system of ABC, apportionment of some overhead costs may need to be done on an arbitrary basis. Implementation of ABC is unlikely to be cost effective when variable production costs are a low proportion of total production costs Which of the above statements is/are true? A) i, ii and iii B) ii and iii C) ii and iv D) All the above