When a traditional, volume-based costing system is used, which of the following products is most likely to suffer from cost distortion?
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- When a traditional, volume-based costing system is used, which of the following products is most likely to suffer from cost distortion? Select one. a. A low-volume, low-complexity product b. A high-volume, medium-complexity product CA low-volume, medium-complexity product d.A low-volume, high-complexity productVolume-based cost systems tend to: Select one: a. none of the given answer b. over-cost low-volume products and over-cost high-volume products. c. over-cost low-volume products and under-cost high-volume products. d. under-cost low-volume products and over-cost high-volume products. e. under-cost low-volume products and under-cost high-volume products. ageVolume-based cost systems tend to: Select one: a. over-cost low-volume products and under-cost high-volume products. Ob. under-cost low-volume products and over-cost high-volume products. O C. none of the given answer O d. under-cost low-volume products and under-cost high-volume products. O e. over-cost low-volume products and over-cost high-volume products. uestions_video Jump to...
- The traditional (Volume -based cost systems ) tend to : a. under -cost low -volume products and under - cost high -volume products b. under -cost low -volume products and over -cost high - volume products . c. over -cost low -volume products and under -cost high - volume products . d.over -cost low -volume products and over -cost high -volume productsWhich among the following is not true about traditional costing system? a. This method allocates greater proportion of overheads to high volume products b. This method avoids the phenomenon of product cost cross subsidization c. This method allocates smaller proportion of overheads to low volume products d. This method leads to cost smoothing:The traditional (Volume-based cost systems) tend to .over-cost low-volume products and under-cost high-volume products a O under-cost low-volume products and over-cost high-volume products b O .over-cost low-volume products and over-cost high-volume products .cO .under-cost low-volume products and under-cost high-volume products .d O
- The traditional (Volume-based cost systems) tend to: O a. under-cost low-volume products and over-cost high-volume products. O b. over-cost low-volume products and under-cost high-volume products. O c. under-cost low-volumė products and under-cost high-volume products. O d. over-cost low-volume products and over-cost high-volume products.Briefly explain the potential negative consequences in pricing decisions from using a traditional, volumebased product-costing system.Which of the following statements is not false of costing systems? A. Activity-based costing systems tend to use fewer cost pools than does a traditional costing system. B. Many traditional costing systems can distort product costs and profitability. C. Activity-based costing systems tend to combine various costs into a single cost pool. D. Traditional costing systems tend to be more costly than activity-based costing systems
- Briefly explain two factors that tend to result in product cost distortion under traditional, volume-based product costing systems.Product costs under variable costing are typically: Group of answer choices A. higher than under absorption costing B. lower than under absorption costing C. the same as with absorption costing D. higher than absorption costing when inventory increasesactivity-based costing systems have a tendency to distort product costs. True or False?