Which of the Following Statements Is False

question 56

Multiple Choice

Which of the following statements is false?

• A) Traditional costing systems tend to over cost high-volume product lines.
• B) Traditional costing systems tend to create a product cost distortion problem.
• C) In traditional costing, the high-volume products are often subsidising the low-volume products.
• D) Traditional product costing systems recognise a range of non-volume-based cost drivers.

---

Definitions:

Expected

Refers to the anticipated outcome, value, or occurrence based on probability or prior evidence.

Increase

To become or cause to become greater in size, amount, number, or degree.

Consumer Incomes

The total amount of income received by consumers, influencing their purchasing power and demand for goods and services.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, contrasting with normal goods.