Question

Which of the following problems of traditional costing approaches are typically revealed by switching to Activity-Based Costing?Over-costing of low-volume, high-complexity productsUnder-costing of high-volume, low-complexity productsOver-producing unprofitable productsUnder-producing profitable productsC and D only

Answer 1

the answer is not option C and D only, but options A and B only.

Step-by-step explanation:

The problems of traditional costing approaches that are typically revealed by switching to Activity-Based Costing are:

Over-costing of low-volume, high-complexity products

Under-costing of high-volume, low-complexity products

Therefore, the answer is not option C and D only, but options A and B only.