When a traditional,volume-based costing system is used,which of the following products is most likely to suffer from cost distortion?
A)A high-volume,medium-complexity product
B)A low-volume,low-complexity product
C)A low-volume,medium-complexity product
D)A low-volume,high-complexity product

Question

Quizplus · Accepted Answer

When a traditional, volume-based costing system is used, low-volume, high-complexity products are most likely to suffer from cost distortion. This is because volume-based costing assumes that overhead costs are driven by the volume of units produced, and high-complexity products require more support and resources during the production process, which would not be reflected in a volume-based system.

When a Traditional,volume-Based Costing System Is Used,which of the Following