Which of the Following Best Describes the Impact of Undercosting

Multiple Choice

Which of the following best describes the impact of undercosting in the allocation of production costs? I don't think this info is necessary for the question. Perhaps add to the question something like: impact of undercosting in the allocation of production costs.Agree. Change made. JMF

A) This is a goal of all companies because undercostingall products allows for larger profit margins.
B) Companies will use target pricing to undercost products.
C) Undercosting some products will lead to overcosting other products, which may then become overpriced and lose market share.
D) Undercosting some products can lead to overcosting other products, which is acceptable because it all balances out in the long run. I don't think this info is necessary for the question. Perhaps add to the question something like: impact of undercosting in the allocation of production costs.Agree. Change made. JMF