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When Using a Single Cost Driver to Allocate Overhead Costs

Question 53

Multiple Choice

When using a single cost driver to allocate overhead costs, the amount of overhead costs that are applied is


A) usually greater for low-volume products than for high-volume products.
B) usually greater for high-volume products than for low-volume products.
C) usually equal for both low and high-volume products.
D) sometimes greater for higher-volume products, and sometimes greater for low-volume products.

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