Traditional cost systems are likely to overcost simple products with higher production volume.

Name: Traditional cost systems are likely to overcost simple products with higher production volume.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Traditional cost systems often allocate overhead costs based on volume-related measures (like labor hours or machine hours), which can result in simple, high-volume products being allocated more overhead than they actually consume, leading to overcosting.

Traditional Cost Systems Are Likely to Overcost Simple Products with Higher