An activity-based costing system suits a company that has:
A) A diverse product range.
B) A highly automated process with uniform products.
C) Low fixed costs.
D) High levels of direct costs.

Question

Quizplus · Accepted Answer

Activity-based costing is ideal for companies with a diverse product range as it allocates overhead costs more accurately based on activities, helping to understand the true cost of each product.

An Activity-Based Costing System Suits a Company That Has