Jh Activity-based costing is preferable in a system: where management needs to support an increase in sale price with a large direct labor cost as a percentage of the total product cost with multiple, diverse products when multiple products have similar product volumes and costs Production costs under variable costing are typically: O higher than absorption costing when invewntory increases O lower than under absorption costing higher than under absoption costing the same as with absorption costing Made with Frames