Consider the following statements about support department cost allocations.

i. In a modern manufacturing environment, it is not necessary to allocate support department costs.

ii. Support department cost allocations continue to be necessary when a highly automated system is in use.

iii. In a flexible manufacturing system, the need to allocate costs diminishes because more costs have become traceable to the product.

Which statement/s is/are true?

Select one:

a. i

b. i, ii and iii

c. i and ii

d. ii and iii