Activity-based costing systems should be adopted when ________.
A)indirect costs represent a small proportion of a product's total costs
B)direct costs represent a small proportion of a product's total costs
C)a company makes one simple product
D)a company has a simple manufacturing process

Question

Quizplus · Accepted Answer

Activity-based costing systems should be adopted when direct costs represent a small proportion of a product's total costs, as this method allows for a more accurate allocation of indirect costs to products based on their actual consumption of resources.

Activity-Based Costing Systems Should Be Adopted When ________