Question

Widely varying consumption ratios: work against the implementation of activity-based costing. indicate an out-of-control production environment. dictate a need for traditional costing systems. create an unsolvable product-costing problem. are reflective of product-line diversity.

Answer 1

Option D is correct.

Widely varying consumption ratios are reflective of product-line diversity.

Step-by-step explanation:

Widely varying consumption ratios are reflective of product-line diversity.

Products in different lines have varying resource requirements which leads to widely varying consumption ratios.