Product costs under traditional costing will be the most different than product costs under ABC when the
A) Products consume different amounts of direct materials
B) Products consume different amounts of direct labor
C) Products are made at different times of the year
D) Products require differing amounts of special services during production

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) allocates overhead based on activities, so costs will differ most when products require different amounts of special services, which are overhead activities.

Product Costs Under Traditional Costing Will Be the Most Different