Assigning overhead using ABC often:
A)Shifts overhead costs from high-volume products to low-volume products
B)Shifts overhead costs from low-volume products to high-volume products
C)Provides the same results as traditional costing
D)Requires one predetermined overhead rate

Question

Quizplus · Accepted Answer

Assigning overhead using Activity-Based Costing (ABC) often shifts overhead costs from high-volume products to low-volume products because it allocates costs based on the actual activities that drive those costs, rather than distributing them uniformly across all products. This method recognizes that low-volume products often require more specialized activities, which can be more costly.

Assigning Overhead Using ABC Often