When Switching from a Traditional Costing System to an Activity-Based

question 217

Multiple Choice

When switching from a traditional costing system to an activity-based costing system that contains some batch-level costs:

• A) the unit product costs of both high and low volume products typically increase.
• B) the unit product costs of both high and low volume products typically decrease.
• C) the unit product costs of high volume products typically increase and the unit product costs of low volume products typically decrease.
• D) the unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase.

---

Definitions:

Market Level Cost

Costs associated with producing and delivering goods or services to a specific level of the market or supply chain.

Core Customer Measure

A key metric or set of metrics used to evaluate the satisfaction, loyalty, or value of a company's primary customer base.

Attracts

To draw interest or attention to something or someone, often resulting in a reaction or response.

Wins

Achievements or successes in a specified area, often used in a business context to denote significant accomplishments or deals secured.