When overhead is applied based on the volume of output,high-volume products tend to "subsidize" low-volume products.

Question

Quizplus · Accepted Answer

This is because high-volume products are producing a larger amount of output, which means they will have higher overhead costs allocated to them. This can result in low-volume products appearing more profitable than they actually are since they are being allocated less overhead.

When Overhead Is Applied Based on the Volume of Output,high-Volume