Answer the following questions using the information below:
Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
The accounting records show the Mossman Job consumed the following resources:

-Factories producing a more varied and complex mix of products have higher costs than factories producing only a narrow range of products because:
A)more variations and complexities require more activities
B)they require more engineers
C)they require more direct laborers
D)they buy more robotics

Question

Answer the following questions using the information below:
Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
  The accounting records show the Mossman Job consumed the following resources:
 
-Factories producing a more varied and complex mix of products have higher costs than factories producing only a narrow range of products because:
A)more variations and complexities require more activities 
B)they require more engineers 
C)they require more direct laborers 
D)they buy more robotics

Quizplus · Accepted Answer

Producing a more varied and complex mix of products require more activities, such as setting up different equipment and processes, managing larger product inventories, and handling more frequent changeovers. This increases the cost of production. Option B, C, and D are not relevant to the given information.

Answer the Following Questions Using the Information Below