In general,traditional product costing methods allocate less cost to low-volume products and more costs to high-volume products than activity-based costing (ABC).

Question

Quizplus · Accepted Answer

Traditional costing methods often allocate overhead based on volume-related measures like machine hours or labor hours, which can result in lower costs for low-volume products and higher costs for high-volume products compared to ABC, which allocates costs based on actual activities and resource usage.

In General,traditional Product Costing Methods Allocate Less Cost to Low-Volume