In Companies Where There Is Good Reason to Change from a Traditionally-Based

Multiple Choice

In companies where there is good reason to change from a traditionally-based costing system to an activity-based costing system, management might expect:

A) Products or services with high volumes will have higher overhead costs.
B) Products or services with high volumes will have lowered overhead costs.
C) Products or services with low volumes will have lowered overhead costs.
D) Products or services with high volumes are generally costed accurately.