An activity-based costing system would probably not be appropriate if:
A)A company produces more than one product line.
B)A company produces only one product.
C)A company is highly automated.
D)A company has more than one production facility.

Question

Quizplus · Accepted Answer

Activity-based costing is most useful for companies that produce multiple product lines or have multiple production processes because it allows for a more accurate allocation of costs to each individual product or process. If a company produces only one product, traditional costing methods may be more appropriate.

An Activity-Based Costing System Would Probably Not Be Appropriate If