Managing and sustaining product diversity requires many more overhead resources such as production schedulers and product design engineers than managing and sustaining a single product. The costs of these resources can be accurately allocated to products using activity-based costing than traditional costing which is based entirely on direct labor-hours.

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Managing and sustaining product diversity requires more overhead resources, and accurately allocating these costs to products is better achieved through activity-based costing rather than traditional costing based only on labor-hours.

Managing and Sustaining Product Diversity Requires Many More Overhead Resources