Which of the following is a result of cost distortion?
A)Overcosting of all products
B)Undercosting of all products
C)Accurate costing of all products
D)Overcosting of some products and undercosting of other products

Question

Quizplus · Accepted Answer

Cost distortion occurs when the actual cost of a product differs from its calculated cost. This can lead to overcosting of some products and undercosting of other products, as some costs are allocated more or less than they should be. Therefore, the best answer is D which states that overcosting of some products and undercosting of other products is a result of cost distortion.

Which of the Following Is a Result of Cost Distortion