Which of the Following Is Not an Indicator That an Activity-Based

question 23

Multiple Choice

Which of the following is not an indicator that an activity-based costing analysis may be appropriate?

• 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.

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Definitions:

Complements

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

Negative

Characterized by lack or absence, often used in contexts such as negative growth (decline) or negative feedback (criticism).

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Quantity Demanded

The amount of a good or service that consumers are willing to buy at a specific price, at a given time.