Widely varying consumption ratios:
A) are reflective of product-line diversity.
B) indicate an out-of-control production environment.
C) dictate a need for traditional costing systems.
D) work against the implementation of activity-based costing.
E) create an unsolvable product-costing problem.

Question

Quizplus · Accepted Answer

Widely varying consumption ratios reflect product-line diversity, indicating that different products consume resources at different rates. This diversity is a natural outcome of offering a wide range of products, each with its own production and resource requirements.

Widely Varying Consumption Ratios