The benefits arising from the introduction of activity-based costing are likely to be greater where:
i. overhead is a large proportion of total cost.
ii. implementation costs are not high due to the support of advanced IT systems.
iii. batches are of a similar size.

A) i and ii
B) i and iii
C) ii and iii
D) None of the given answers

Activity-Based Costing

An accounting method that assigns costs to products or services based on the resources that they consume, aiming to provide more accurate costing information.

Implementation Costs

Expenses associated with putting a new system or process into use.

Overhead

The indirect costs of running a business that are not directly tied to a specific product or service, such as utilities, rent, and administrative salaries.