A manufacturing company produces standard and custom-ordered computer desks. The

Question

A manufacturing company produces standard and custom-ordered computer desks. The company currently uses job order costing, but the owner of the company recently read an article promoting activity based costing. What would be the result if this company used an activity-based costing system? O It would provide less specific cost data for standard desk orders. O It would provide higher overhead costs on custom and standard desk orders. O It would provide higher profits on custom-ordered desks. o It would provide more accurate cost data for the custom-ordered desks. NEXT BOOKMARK CLEAR

Explanation / Answer

Answer is It would provide more accurate cost data for the custom ordered desks.

Explanation:

Unlike job costng, the activity-based costing helps in allocating the minute activities undertaken for the production of various products to the products and then allocate the cost to the products, which helps in more accurate costing of products.

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