Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce.
A)low; little
B)low; considerable
C)high; little
D)high; considerable

Question

Quizplus · Accepted Answer

Activity-based costing is most beneficial for companies with high overhead costs and considerable diversity among products, as it provides more accurate cost allocation.

Which Terms Would Make the Following Sentence True? Manufacturing Companies