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In changing from a traditional costing system to an activity-based costing system, overhead costs ...

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In changing from a traditional costing system to an activity-based costing system, overhead costs ...

In changing from a traditional costing system to an activity-based costing system, overhead costs tend to shift from high-volume standard products to low-volume premium products because

▸ all overhead costs are direct.

▸ premium products usually consume more activities per unit than standard products.

▸ all overhead costs are indirect.

▸ standard products use more total activities than premium products.

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Managerial Accounting

Edition: 4^th

Author: Davis

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