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Question: xye is in the process of evaluating different costing system...

Question details
XYE is in the process of evaluating different costing system What will occur if a company bases overhead allocation solely on volume?
a.
High-volume products will be undercosted and low-volume products will be overcosted.
b.
High-volume products will be overcosted and low-volume products will be undercosted
c.
It is irrelevant because this is the sole basis of the activity-based costing model.
d.
All of the above are correct.

 

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