Question: When product diversity exists, basing overhead allocation on activity based costing A. will undercost simple, high volume products and overcost complex, low volume products B.

When product diversity exists, basing overhead allocation on activity based costing

A. will undercost simple, high volume products and overcost complex, low volume products

B. will overcost simple, high volume products and undercost complex, low volume products

C. will have no effect

D. at least two of the answers are correct

E. will likely result in more precise product costs

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