What Would One Expect to Occur When Cross Subsidies Are

question 45

Multiple Choice

What would one expect to occur when cross subsidies are eliminated with the use of activity-based costing (ABC) ?

• A) That lower-volume products pick up more of their fair share of overhead costs.
• B) That higher-volume products pick up more of their fair share of overhead costs.
• C) That lower-volume products will be determined as being unprofitable.
• D) That higher-volume products will be determined as being unprofitable.

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Definitions:

Visual

Pertaining to the sense of sight and the ability to interpret the surrounding environment through light in the visible spectrum.

Loose Associations

A thought disorder characterized by a disorganized way of thinking, where connections between thoughts are unclear or not logical.

Clang

A rhyme used by some people with schizophrenia as a guide to forming thoughts and statements.

Neologisms

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