Activity-Based Costing Is Most Likely to Yield Benefits for Companies

question 164

Multiple Choice

Activity-based costing is most likely to yield benefits for companies ________.

• A) with complex product design processes that vary significantly from product to product
• B) with operations that remain fairly consistent across product lines
• C) in a monopolistic market
• D) having nominal percentage of indirect costs

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Definitions:

Colas

Cost-of-living adjustments (COLAs) are automatic adjustments made to salaries, wages, or benefits to counteract the effects of inflation.

Marginal Utility

The increase in happiness or usefulness experienced by a consumer when one more unit of a good or service is consumed.

Good A

A placeholder term that typically represents a general or unspecified item in economic models or discussions.

Good B

A term representing a specific product or service under consideration in an economic model or market analysis.