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A firm produces several product lines through semi-customized orders. The firm incurs significant SG&A costs. Which of the following is TRUE about this firm, given

A firm produces several product lines through semi-customized orders. The firm incurs significant SG&A costs.

Which of the following is TRUE about this firm, given only the above information?

a.

This firm is likely to get the same product cost numbers using activity-based costing or job-order costing.

b.

This firm will be more profitable if it uses activity-based costing.

c.

This firm is likely to get different product cost numbers using activity-based costing compared to job-order costing.

d.

This firm will not be more profitable if it uses activity-based costing.

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