Question

An approach in which the company under-costs it's one product and over-costs at least one product is classified as

a.

service-cost across subsidizing

b.

product-price cross subsidizing

c.

product-cost cross subsidizing

d.

product cross subsidizing

Answer: (c).product-cost cross subsidizing

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. An approach in which the company under-costs it's one product and over-costs at least one product is classified as

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. The budgeted total cost in indirect cost pool, is divided by budgeted total quantity of the cost allocation base, is calculated by

Q. In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as

Q. The costs of all the activities for individual products or services can be called

Q. In an activity based costing implementation, the product's diverse demand is based on

Q. The broad's average use to assign the cost of revenue to cost objects will be classified as

Q. The costs of all the activities for a group of products, rather than individual product can be classified as

Q. The product which requires low amount of resources, but incur high per unit cost is classified as

Q. In activity based costing system, the description of activity can be classified as

Q. The factors that accelerate the process of refining a costing system include

Q. The cost pool category, which have the similar cause and effect relationship, with each cost driver uses as an allocation base is classified as

Q. In the activity based costing method implementation, the indirect costs are allocated by using the

Q. The costing system, in which individual activities are identified as the cost object, is considered as

Q. The type of costs that cannot be traced for individual products but help in supporting an organization are classified as

Q. In the activity based costing method implementation, an output unit level costs are classified as

Q. The hierarchy which is based on different types of cost allocation and drivers, to categorize cost pool activity is classified as

Q. The product which requires large amount of resources, but incur low per unit cost is classified as

Q. The costs of undertaken activities is to support individual products and are known as

Q. If the net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be

Q. If an initial investment is $765000, the payback period is 4.5 years, then increase in future cash flow will be

Q. The categories of cash flows include

Recommended Subjects

Are you eager to expand your knowledge beyond Cost Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!