If the usage of project activities is not proportional to the number of units produced, then some managers will be overcharged and others undercharged under the:
A)Activity-based costing
B)Volume-based costing
C)Overhead costing
D)Process costing

Question

Quizplus · Accepted Answer

Volume-based costing allocates costs based on the volume of units produced, leading to inaccuracies when project activities do not directly correlate with production volume. This can result in some managers being overcharged and others undercharged for the costs of their projects.

If the Usage of Project Activities Is Not Proportional to the Number