Overhead allocation based on volume alone

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Reference no: EM13159187

Which of the following statements about overhead allocation based on volume alone is correct?

a. It must be used for external financial reporting.

b. It will systematically overcost high-volume products and undercost low-volume products.

c. It will systematically overcost low-volume products and undercost high-volume products.

d. It is a key aspect of the activity-based costing model.

Reference no: EM13159187

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