Product cross-subsidisation occurs where at least one product is over-costed while others are under-costed in traditional costing system. However, does it possible all products is under-costed in traditional system. I calculate cost of two products when using traditional and ABC system. Both of their cost under traditional system are lower than their cost under ABC system. Is it possible?explain how?

Answer rating: 100% (QA)

Yes it is possible for all products to appear undercosted in a traditional costing system compared t... View the full answer