Under what conditions might activity-based costing have a role in process costing settings?
A)when there are products produced with little diversity
B)when there are products produced with homogeneous processes
C)when multiple products are being produced
D)when only one product is being produced

Question

Quizplus · Accepted Answer

Activity-based costing is most useful in environments where multiple products are being produced, especially if these products consume resources in different proportions. This method allows for more accurate allocation of overhead costs based on the actual activities that drive those costs, which is particularly beneficial in complex production settings with diverse products.

Under What Conditions Might Activity-Based Costing Have a Role in Process