With traditional costing systems, products manufactured in small batches and in small annual volumes may be ________ because batch-related and product-sustaining costs are assigned using unit-related drivers.
A) overcosted
B) fairly costed
C) undercosted
D) ignored

Question

Quizplus · Accepted Answer

Small batches and annual volumes result in a higher proportion of batch-related and product-sustaining costs per unit, which are assigned using unit-related drivers. This can cause products to be undercosted.

With Traditional Costing Systems, Products Manufactured in Small Batches and in Small