30. Overhead allocation based on volume alone a. is a key aspect of the activity-based costing model. b. will systematically overcost high-volume products and undercost low-volume products. c. will systematically overcost low-volume products and undercost high-volume products. d. must be used for external financial reporting since an activity-based costing system cannot be designed to generate full product costs for external reporting purposes.

June 20, 2017 mfadmin Managerial Accounting

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30. Overhead allocation based on volume alone a. is a key aspect of the activity-based costing model. b. will systematically overcost high-volume products and undercost low-volume products. c. will systematically overcost low-volume products and undercost high-volume products. d. must be used for external financial reporting since an activity-based costing system cannot be designed to generate full product costs for external reporting purposes.