When there are batch-level or product-level costs,in comparison to a traditional cost system,an activity-based costing system ordinarily will shift costs from high-volume to low-volume products.

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Quizplus · Accepted Answer

Activity-based costing system focuses on identifying the activities that consume resources and allocate cost based on the consumption of those activities. This system usually results in more accurate cost allocation and may shift costs from high-volume to low-volume products if those products consume more resources per unit than high-volume products.

When There Are Batch-Level or Product-Level Costs,in Comparison to a Traditional