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    Cost Management Study Set 3
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    Exam 5: Activity-Based Costing and Customer Profitability Analysis
  5. Question
    Volume-Based Overhead Rates May Cause Undesirable Strategic Effects Such As
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Volume-Based Overhead Rates May Cause Undesirable Strategic Effects Such As

Question 26

Question 26

Multiple Choice

Volume-based overhead rates may cause undesirable strategic effects such as:


A) Management by objectives.
B) Cross-subsidization of products.
C) Ineffective management of operations for process improvement.
D) Proration of variances.

Correct Answer:

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