____ is present whenever products have different consumption ratios for different overhead activities.
A) Environmental costs
B) Activity sharing
C) Product diversity
D) Activity inputs
E) Control costs

Question

Quizplus · Accepted Answer

Product diversity refers to situations where different products consume overhead costs differently. This means that different products have different consumption ratios for different overhead activities. Option A is incorrect because environmental costs are not necessarily related to consumption ratios for overhead activities. Option B is incorrect because activity sharing refers to situations where multiple products use the same activity, rather than different consumption ratios. Option D is incorrect because activity inputs refer to the resources used to perform an activity, not how those resources are consumed by different products. Option E is incorrect because control costs are costs associated with ensuring quality or managing operations, and are not related to consumption ratios for overhead activities.

____ Is Present Whenever Products Have Different Consumption Ratios for Different