As compared to a high-volume product, a low-volume product
A) usually requires less special handling.
B) is usually responsible for more overhead costs per unit.
C) requires relatively fewer machine setups.
D) requires use of direct labor hours as the primary cost driver to ensure proper allocation of overhead.

Question

Quizplus · Accepted Answer

A low-volume product usually requires more specialized equipment, unique materials, and skilled labor, resulting in higher overhead costs per unit due to the lower production volume.

As Compared to a High-Volume Product, a Low-Volume Product