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Part $1$

Nobis Company uses an ABC system. Which of the following statements$$ is$/$are correct with respect to$$ ABC?

I.

All cost allocation bases used in ABC systems are cost drivers.

II$.$

ABC systems are useful in$$ manufacturing, but not in merchandising or service industries.

III.

ABC systems can eliminate cost distortions because ABC develops cost drivers that have a$$ cause$-$and$-$effect relationship with the activities performed.