Question

Activity-based costing may be beneficial if:

a) Your company only makes one product on a continuous basis.
b) Direct costs are difficult to assign to each product.
c) Your company produces product lines that take very different amounts of time with particular processes
d) None of the above

Answer 1

Activity-based costing may be beneficial if a company produces product lines that take very different amounts of time with particular processes.

Step-by-step explanation:

Activity-based costing may be beneficial if:(c) Your company produces product lines that take very different amounts of time with particular processes.

In activity-based costing, the costs of producing different products are allocated based on their specific activities or processes. This method is particularly useful when different products require significantly different resources or time to complete. By assigning costs more accurately to each product, companies can make better decisions regarding pricing, production planning, and resource allocation.