Assigning overhead using ABC will usually
a. decrease the cost per unit for low volume products as compared to a traditional overhead allocation.
b. increase the cost per unit for low volume products as compared to a traditional overhead allocation.
c. provide less accurate cost per unit for low volume products than will traditional costing.
d. result in the same cost per unit for low volume products as does traditional costing.
Answer: b. increase the cost per unit for low volume products as compared to a traditional overhead allocation.
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