The presence of any of the following factors would suggest a switch to activity based costing except when:
A) product lines differ greatly in volume.
B) overhead costs constitute a minor portion of total costs.
C) the manufacturing process has changed significantly.
D) production managers are ignoring data provided by the existing system.

Question

Quizplus · Accepted Answer

When overhead costs constitute a minor portion of total costs a switch to activity-based costing would not normally be considered.

The Presence of Any of the Following Factors Would Suggest