In which of the following situations are the techniques of activity-based costing most likely to lead to

Question:

In which of the following situations are the techniques of activity-based costing most likely to lead to improved production or marketing decisions.

(I) The All-Direct Company, which incurs significant direct costs, but no overhead costs, to manufacture its extensive and ever-changing product line.

(II) The One-Size-Fits-All Hat Company, which makes a single product that is sold to many different kinds of retailers, in varying volumes, through various marketing channels, in many different geographic regions.

(III) The Iowa Wind Turbine Electric Cooperative, which has direct costs and fixed overhead, but no variable overhead.