According to an ABC system,A8 is ________ under the traditional cost system.
A)undercosted
B)overcosted
C)fairly costed
D)accurately costed

Question

Quizplus · Accepted Answer

The ABC (Activity-Based Costing) system often reveals that products like A8 are undercosted under traditional costing systems because traditional systems allocate overhead based on volume measures, which may not accurately reflect the actual resources consumed by the product.

According to an ABC System,A8 Is ________ Under the Traditional