A product consumes a high level of resources per unit,but is reported to have a low cost per unit is known as ________.
A)product overcosting
B)product undercosting
C)strategic consequences
D)accurate product costs
E)accurate service costs

Question

Quizplus · Accepted Answer

A product that consumes a high level of resources but has a low cost per unit is known as product undercosting. This may occur due to inaccurate allocation of costs or overheads, leading to a distortion of the product's true cost. It can cause problems in decision making as managers may overproduce or underprice the product, leading to loss of profitability.

A Product Consumes a High Level of Resources Per Unit,but