Consider the following statements concerning ABM (activity-based management) and ABC (activity-based costing):

i. ABM is an alternative to ABC

ii. ABC cannot be used by the services industry

iii. ABC is used in conjunction with ABM

iv. The use of ABC results in less cost averaging of overheads in diversified activities compared to the use of traditional, volume-based costing systems.

Which of the above statements is (are) true?

Multiple Choice

• i only

• ii and iii

• iii only

• iii and iv

• iv only