In Changing from a Traditional Costing System to an Activity-Based

question 134

Multiple Choice

In changing from a traditional costing system to an activity-based costing system, overhead costs tend to shift from high-volume standard products to low-volume premium products because

• A)all overhead costs are indirect.
• B)premium products usually consume more activities per unit than standard products.
• C)standard products use more total activities than premium products.
• D)all overhead costs are direct.