The correct answers are:

• ABC is particularly useful in organisations where overheads account for a significant proportion of total costs

• In the modern compared to the traditional business environment, support department costs have a tendency to increase

• The traditional absorption costing approach to dealing with overheads was developed at a time when most organisations produced only a narrow range of products and when overheads were only a small fraction of total costs

The incorrect answer is:

ABC is equally as time-consuming for a business as traditional absorption costing (ABC uses many cost drivers as absorption bases and whilst this tends to produce more realistic product costs it is significantly more time consuming).