Which of the Following Factors Would Suggest a Switch to Activity-Based

question 43

Multiple Choice

Which of the following factors would suggest a switch to activity-based costing?

• A)product lines similar in volume and manufacturing complexity
• B)overhead costs constitute a significant portion of total costs
• C)the manufacturing process has been stable
• D)production managers use data provided by the existing system

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Definitions:

High Market Growth Rates

Describes markets that are expanding rapidly, with increasing sales and consumer interest, often providing lucrative opportunities for businesses.

Relative Market Shares

A metric comparing a company's market share to that of its largest competitor, indicating competitiveness in a market.

Growth-Share Matrix

A strategic tool used for portfolio analysis, categorizing a company’s business units or products into four quadrants based on market growth rate and relative market share.

Tortoises

Slow-moving, terrestrial turtles often characterized by a dome-shaped shell and long lifespan.