If substantial batch-level or product-level costs exist, then overhead allocation based on a measure of volume such

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If substantial batch-level or product-level costs exist, then overhead allocation based on a measure of volume such as direct labor-hours alone: (please provide the necessary brief explanation to justify)

a. Is a key aspect of the activity-based costing model.

b. Will systematically overcost high-volume products and undercost low-volume products.

c. Will systematically overcost low-volume products and undercost high-volume products.

d. Must be used for external financial reporting since activity-based costing cannot be used for external reporting purposes.

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Managerial Accounting

ISBN: 978-0133428377

4th edition

Authors: Karen W. Braun, Wendy M. Tietz

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Question Posted: Sep 11, 2016 11:54 AM

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If substantial batch-level or product-level costs exist, then overhead allocation based on a measure of volume such

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b If we have substantial batch level or product level costs exist th...View the full answer

Managerial Accounting

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