Output-cost cross-subsidisation means that if management under-costs one of its outputs,then it will over-cost at least one of its other outputs.

Question

Quizplus · Accepted Answer

Output-cost cross-subsidisation involves balancing the costs of different outputs within an organization. If one output is under-costed, the costs of other outputs may be raised to compensate, achieving balance. Therefore, the statement is true.

Output-Cost Cross-Subsidisation Means That If Management Under-Costs One of Its