Activity-based costing is appropriate for a company that manufactures a wide variety of products

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Activity-based costing (ABC) is a costing method that identifies and assigns costs to specific activities and then assigns those costs to the products or services that use those activities. This method is particularly useful for companies that manufacture a wide variety of products because it allows for more accurate and detailed cost allocation based on the specific activities required to produce each product. ABC helps to identify inefficiencies in the production process, which can lead to cost reductions and improved profitability.

Activity-Based Costing Is Appropriate for a Company That Manufactures a Wide