[Solved] When traditional production volume based overhead allocations are made, rather than activity based allocations,

Q.	When traditional production volume based overhead allocations are made, rather than activity based allocations,
A.	The unit costs of high volume and large size products tend to be overstated, while the unit cost of low volume and small products tend to be understated.
B.	The unit costs of high volume and large size products tend to be understated, while the unit cost of low volume and small products tend to be overstated.
C.	The unit costs of high volume and small products tend to be overstated, while the unit costs of low volume and large products is understat
Answer» A. The unit costs of high volume and large size products tend to be overstated, while the unit cost of low volume and small products tend to be understated.

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Strategic Cost Accounting

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