In Changing from a Traditional Costing System to an Activity-Based

Multiple Choice

In changing from a traditional costing system to an activity-based costing system, overhead costs tend to shift from high-volume standard products to low-volume premium products because

A) all overhead costs are indirect.
B) premium products usually consume more activities per unit than standard products.
C) standard products use more total activities than premium products.
D) all overhead costs are direct.