Indicators that an activity-based costing analysis may be appropriate include all the following except
A)bids for complex products are accepted,while bids for simple products are rejected.
B)products are similar and consume resources in the same way.
C)high-volume jobs show losses or minimal profits,while low-volume jobs show healthy profits.
D)bids for jobs that require "special" processing are always accepted.

Question

Quizplus · Accepted Answer

Activity-based costing is designed for situations where products or services consume resources in different ways. Therefore, if products are similar and consume resources in the same way, a traditional costing system may be appropriate. The other options suggest that there are differences in complexity or profitability across products or jobs, which could benefit from an activity-based costing analysis.

Indicators That an Activity-Based Costing Analysis May Be Appropriate Include