ABC costing might lead to:
A)increasing the sales price of low-volume products.
B)increasing the sales price of high-volume products.
C)increasing low-volume products that appear to be profitable.
D)decreasing high-volume products that appear to be unprofitable.
E)increasing materials cost.

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) allocates overhead costs more accurately to products based on the activities they require. This often reveals that low-volume products consume more resources than previously thought, leading to an increase in their sales price to reflect their true cost.

ABC Costing Might Lead To