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Traditional absorption costing is more suitable than activity-based costing when:

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Traditional absorption costing is more suitable than activity-based costing when:

A.

overheads are not driven by production volume.

B.

the company has a diverse product range.

C.

production is specific to customer needs.

D.

overheads are small in comparison to direct costs.

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Which of the following would lead to a favourable variance?
XY manufactures a range of products and uses an activity based costing system.
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