4) With traditional costing systems, products manufactured in small batches and in small annual volumesmay bedrivers.--- because batch-related and product-sustaining costs are assigned using unit-relatedA) overcostedB) fairly costedC) undercostedD) ignored

Traditional costing system is old traditional costing system in which direct costs are already…

4) With traditional costing systems, products manufactured in small batches and in small annual volumes may be because batch-related and product-sustaining costs are assigned using unit-related drivers. A) overcosted B) fairly costed C) undercosted D) ignored

4) With traditional costing systems, products manufactured in small batches and in small annual volumes may be because batch-related and product-sustaining costs are assigned using unit-related drivers. A) overcosted B) fairly costed C) undercosted D) ignored

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

4) With traditional costing systems, products manufactured in small batches and in small annual volumes
may be
drivers.
--- because batch-related and product-sustaining costs are assigned using unit-related
A) overcosted
B) fairly costed
C) undercosted
D) ignored

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