What Would One Expect to Occur When Cross Subsidies Are

Multiple Choice

What would one expect to occur when cross subsidies are eliminated with the use of activity-based costing (ABC) ?

A) That lower-volume products pick up more of their fair share of overhead costs.
B) That higher-volume products pick up more of their fair share of overhead costs.
C) That lower-volume products will be determined as being unprofitable.
D) That higher-volume products will be determined as being unprofitable.