With Traditional Costing Systems, Products Manufactured in Small Batches and in Small

question 62

Multiple Choice

With traditional costing systems, products manufactured in small batches and in small annual volumes may be ________ because batch-related and product-sustaining costs are assigned using unit-related drivers.

• A) overcosted
• B) fairly costed
• C) undercosted
• D) ignored

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Definitions:

Over-heating

The condition of a machine or system running beyond its normal temperature range, which can lead to failure or damage.

Axial TIR

Tolerance of radial run-out in a rotating component, measured along the axis.

Hydraulic Brake Rotor

A critical component in hydraulic braking systems, the rotor is a disc that brake pads press against to create friction and slow down the vehicle.