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

question 84

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:

Data Set

A collection of data, often used for analysis, typically consisting of related sets of information.

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below.

Mean

The arithmetic average, found by adding a set of values and dividing the sum by the number of values in the set.

Telemarketers

Individuals or companies that market goods or services to potential customers over the phone.