11) Misleading product cost numbers are MOST likely the result of misallocating:
A) direct material costs.
B) direct manufacturing labor costs.
C) overhead costs.
D) All of the above are correct.
12) Undercosting of a product is MOST likely to result from:
A) misallocating direct labor costs.
B) underpricing the product.
C) overcosting another product.
D) understating total product costs.
13) Overcosting a particular product may result in:
A) gain of market share for the product.
B) higher profits per unit for the product.
C) operating efficiencies.
D) overstating total costs of all the products.
14) Explain how traditional cost systems, using only unit level cost drivers, distort product costs.
15) Explain how traditional cost systems, using only unit level cost drivers, distort customer costs.