In Companies Where There Is Good Reason to Change from a Traditionally

question 36

Multiple Choice

In companies where there is good reason to change from a traditionally based costing system to an activity-based costing system, management might expect

• A)products or services with high volumes will have higher overhead costs.
• B)products or services with high volumes will have lowered overhead costs.
• C)products or services with low volumes will have lowered overhead costs.
• D)products or services with high volumes are generally costed accurately.

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