Traditional Overhead Allocations Result in Which of the Following Situations

question 85

Multiple Choice

Traditional overhead allocations result in which of the following situations?

• A)Overhead costs are assigned as period costs to manufacturing operations.
• B)High-volume products are assigned too much overhead,and low-volume products are assigned too little overhead.
• C)Low-volume products are assigned too much,and high-volume products are assigned too little overhead.
• D)The resulting allocations cannot be used for financial reports.

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