Question
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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