The presence of any of the following factors would suggest a switch to ABC except when
A) product lines differ greatly in volume.
B) overhead costs constitute a major portion of total costs.
C) the manufacturing process has changed significantly.
D) production managers are using data provided by the existing system

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) is beneficial when there's a significant variation in product lines, high overhead costs, or changes in manufacturing processes, as it provides more accurate cost information. However, the use of data by production managers from the existing system does not inherently suggest a need to switch to ABC.

The Presence of Any of the Following Factors Would Suggest