When Is a Volume-Based Cost System Appropriate for a Service

Multiple Choice

When is a volume-based cost system appropriate for a service company?

A) A volume-based cost system is always appropriate for a service company.
B) A volume-based cost system is never appropriate for a service company.
C) A volume-based cost system is appropriate for a service company when certain customers require more attention and a higher level of service than other customers.
D) A volume-based cost system is appropriate for a service company when every customer places a similar demand on the company's resources.