Managing and sustaining product diversity requires many more overhead resources,such as production schedulers and product design engineers,than managing and sustaining a single product.The costs of these resources can be accurately allocated to products on the basis of direct labour hours.

Question

Quizplus · Accepted Answer

The costs of overhead resources like production schedulers and product design engineers are not directly related to the number of labor hours but are more accurately allocated based on activities that drive the costs, such as the complexity of the product designs or the number of product changes, making activity-based costing a more accurate method.

Managing and Sustaining Product Diversity Requires Many More Overhead Resources,such