MCQOPTIONS
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| 1. |
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» 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. | |