Which of the following statements about product-cost distortions and product pricing is/are true?
i.Under conventional volume-based product costing systems,high volume and relatively simple products are often overcosted while low volume and complex products are undercosted
ii.The use of a conventional volume-based product costing system may result in significant cost distortions among product lines.
iii.Overpricing high-volume products can lead to pricing errors.

Question

Quizplus · Accepted Answer

All the given statements are true. Under a conventional volume-based product costing system, high volume and relatively simple products are often overcosted while low volume and complex products are undercosted, resulting in significant cost distortions among product lines. Overpricing high-volume products can lead to pricing errors. Therefore, all the given options are correct.

Which of the Following Statements About Product-Cost Distortions and Product