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Which statement/s related activity-based costing is/are correct? Statement 1: short-term variable overhead costs should be...

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Accounting

Which statement/s related activity-based costing is/are correct? Statement 1: short-term variable overhead costs should be traced to products using volume-related cost drivers, such as machine hours or direct labour hours. Statement 2: long-term variable production overhead costs are partly driven by the complexity and diversity of production work, as well as by the volume of output. Statement 3: transactions undertaken by support department staff are the appropriate cost drivers for long-term variable overhead costs. Statement 4: overheads should be charged to products based on their 'usage of an activity'. A product's 'usage of an activity' is measured by the number of cost drivers used by that activity.
a.
Statement 1 only
b.
Statements 3 and 4
c.
Statements 1 and 2
d.
Statements 1,3 and 4

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