Question $1$: What are examples of when cross$-$subsidization or cost distortion happen? $($choose all that apply$)$

a$.$ Over allocating costs to a higher volume product

b$.$ Over allocating costs to lower volume products

c$.$ Under allocating costs due to less labor intensity when labor hours are used as the activity driver

d$.$ Under allocating costs due to greater labor intensity when labor hours are used as the activity driver

Question $2$:

What ways can cost distortions impact pricing? $($Select all that apply.$)$

a$)$ Overpricing a product leading to loss of demand$$

b$)$ Underestimating a product's cost will have impact on perceived margins$$

c$)$ Underpricing your product when using a cost plus methodology$$