For a Company with Diverse Products, Undercosting Overhead of a Product

Multiple Choice

For a company with diverse products, undercosting overhead of a product will lead to product-cross -subsidization which means that:

A) direct labor costs of the product are misallocated
B) direct material costs of the product are misallocated
C) indirect costs of another product are misallocated
D) direct costs of another product are misallocated