Ivey Co is an electronic business operating within an advanced manufacturing technology environment producing fitness watches, weight scales and other electronic items it uses life cycles costing (LLC)

Ivey Co is about launch a new electronic gadget called the dean, for measuring health statistics in partients who are unwell. it intends to sell the gadget to hospitals.

	20c1	20x2
Number of Diams	5,000	7,500
components cost per unit	$12.00	$10.00
labour cost per unit	$14.00	$12.00
total fixed production cost	$5,000	$4,500
Total Fixed selling and distribution cost	$1,000	$12,000

Invey co is also thing of developing "smart" weight scales that scan food labels and give nutrients based on the weight

the below is the question

24. Are the following statements true or false

(1)Ivey Co uses an expensive costing system

(2) Ivey Cos costing system is quicker to use than traditional absorption costing

• Both statements are True
• Both statements are False
• Statement 1 is True, and Statement 2 is False
• Statement 1 is False and Statement 2 is True