Question: When product diversity exists, basing overhead allocation solely on volume (traditional costing) A. will overcost simple,high-volume products and undercost complex, low-volume products B. will likely

When product diversity exists, basing overhead allocation solely on volume (traditional costing)

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

B. will likely result in more precise product costs than would be the case with activity based costing.

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

D. will have no effect

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