Activity-based costing is appropriate for a company that manufactures a single product.

Name: Activity-based costing is appropriate for a company that manufactures a single product.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Activity-based costing is generally more suitable for companies that have multiple products, as it allows for better understanding and allocation of costs to various products and activities. If a company only manufactures a single product, traditional costing methods may suffice.

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