Which of the following statements is False? A. A traditional volume-based system

Question

Which of the following statements is False?

A. A traditional volume-based system based on direct labor generally overcosts high volume-product lines.
B. A traditional volume-based system based on direct labor will often (but not always) distort product costs.
C. In a traditional volume-based costing system based on direct labor, high-volume products generally subsidize low-volume products.
D. An activity-based costing system generally undercosts low-volume, complex product lines.
E. A traditional volume-based costing system based on direct labor generally undercosts low-volume, complex product lines.

Explanation / Answer

The statement d is false

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