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What will occur if company bases overhead allocation solely

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Reference no: EM132667411

Problem 1: XYE is in the process of evaluating different costing system What will occur if a company bases overhead allocation solely on volume?

Select one:

a. High-volume products will be overcosted and low-volume products will be undercosted
b. It is irrelevant because this is the sole basis of the activity-based costing model.
c. High-volume products will be undercosted and low-volume products will be overcosted.
d. All of the above are correct.

Reference no: EM132667411

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