Activity-based costing is likely to be most beneficial to firms with which characteristics?
A)Has a multi-product range that use resources differently.
B)Manufactures a single product.
C)Has a multi-product range that use similar processes.
D)Is set-up as a public company.

Question

Quizplus · Accepted Answer

Activity-based costing is most beneficial to firms with a multi-product range that use resources differently. This is because it allows for more accurate allocation of costs to each product based on the specific activities needed to produce each product.

Activity-Based Costing Is Likely to Be Most Beneficial to Firms