The term used to describe a situation when at least one miscosted product causes other products to be miscosted in the organization is known as
A)cross-subsidization.
B)product marketing.
C)product overcosting.
D)product undercosting.
E)product sub-optimization.

Question

Quizplus · Accepted Answer

Cross-subsidization occurs when the cost of one product or service is incorrectly assigned, causing other products or services to be miscosted. This can result in a distortion of profitability and can lead to sub-optimal decision-making.

The Term Used to Describe a Situation When at Least