Question

When a company has extensive product diversity and complex overhead, it is best to assign overhead using ______.

Answer 1

When a company has extensive product diversity and complex overhead, it is best to assign overhead using

• activity-based costing

What is Product Diversity?

This refers to the differentiation in product as there is a need for expansion in the market for a product in order to increase sales.

With this in mind, we can state that when a company has extensive product diversity and complex overhead, it is best to assign overhead using activity-based costing.

Read more about product diversity here:
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