Which of the Following Statements Is True Regarding Cross-Subsidies

Multiple Choice

Which of the following statements is true regarding cross-subsidies?

A) They occur when factory workers are trained to work on many different machines.
B) They occur when high-volume products are assigned more than their fair share of overhead costs.
C) They occur when high-volume products have more direct material and direct labour costs than overhead costs.
D) They occur when more than one cost driver can be determined for a particular overhead cost item.