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.

Answer: Option (a) is the correct answer. Under-cost low-volume products and over-cost high-volume…

Answered: The traditional (Volume-based cost…

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Accounting

The traditional (Volume-based cost systems) tend to:

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

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.

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For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
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 products
When a traditional, volume-based costing system is used, which of the following products is most likely to suffer from cost distortion? Select one O a. A low-volume, low-complexity product ObA low-volume, high-complexity product O CA low-volume, medium-complexity product O d. none of the given answer O e. A high-volume, medium-complexity product
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 increases
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Which of the following statements is false ? a. Volume-based costing has typically resulted in undercost for high-volume products and overcost for low-volume products . b. All the statements are false . c . Activity-based costs per unit are always greater than volumebased costs per unit. d. Activity-based costing typically provides less information about product costs while requiring more recordkeeping. e. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product.
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