For a company with diverse$$ products, undercosting overhead of a product will lead to

productminus$$cross

minus$$subsidization

which means$$ that:

Question content area bottom

Part $1$

A$.$

direct material costs of the product are misallocated

B$.$

direct costs of another product are misallocated

C$.$

indirect costs of another product are misallocated

D$.$

direct labor costs of the product are misallocated