ABC should be used in which of the following situations?
A)single-product firms with multiple steps
B)multiple-product firms with only a single process
C)multiple-product firms with multiple processing steps
D)in all manufacturing firms

Question

Quizplus · Accepted Answer

ABC should be used in multiple-product firms with multiple processing steps because this method helps to allocate overhead costs more accurately by identifying the activities that drive these costs. In single-product firms or multiple-product firms with only single processes, traditional costing methods may be sufficient. ABC may not be needed in all manufacturing firms as it depends on the complexity of their products and processes.

ABC Should Be Used in Which of the Following Situations