Basing Overhead Allocation Solely on Volume

question 14

Multiple Choice

Basing overhead allocation solely on volume

• A)will undercost high-volume products and overcost low-volume products.
• B)will overcost high-volume products and undercost low-volume products.
• C)is the sole basis of the activity-based costing model.
• D)All of the above are correct.

---

Definitions:

Quotation

A repetition of someone else's statement, thoughts, or expressions, typically marked by quotation marks and attributed to the original source.

MLA Style

A set of guidelines for writing and formatting research papers, including citations, developed by the Modern Language Association.

In-text References

Citations within the body of a document that point to sources in the bibliography or reference list.

Paraphrasing

The act of rewording text or speech to achieve clearer understanding, often to simplify or clarify the original message.