Consider the following statements.

1. Product diversity creates problems in product costing because diverse products tend to utilise productive activities in very different ways.
2. Overhead costs that are not incurred at the unit level create product-costing problems because they do not vary with measures such as direct labour hours or machine hours.
3. Product diversity exists when a single product, such as pens, are made in different colours.

Which of the above statement/s is/are true?

Select one:

a. i and ii

b. i

c. ii

d. i and iii