The Use of Activity-Based Costing Is Most Appropriate For

question 40

Multiple Choice

The use of activity-based costing is most appropriate for:

• A)Firms that manufacture multiple product lines.
• B)Firms that have very low manufacturing overhead costs relative to other costs of production.
• C)Firms with high levels of production activity.
• D)Firms that are labor intensive.
• E)Firms that manufacture a small number of product lines.