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.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is appropriate when products differ in complexity or consume resources in different ways. Option A indicates a difference in complexity, while option D indicates a need for special processing, both of which would warrant an ABC analysis. Option C suggests that there may be a difference in resource consumption between high and low-volume jobs, which could also indicate a need for ABC. Option B suggests that products are similar in complexity and resource consumption, which would not require an ABC analysis.

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