Flavorful Manufacturing sells a number of goods whose selling price is heavily
influenced by cost. A recent study of product no. 519 revealed a traditionally-
derived total cost of $1,019, a selling price of $1,850 based on that figure,
and a newly computed activity-based total cost of $1,215. Which of the
following statements is true?
2.0 / 2.0
In comparison with a system that uses a single, volume-based cost driver, an
activity-based costing system is preferred when a company has: