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When switching from a traditional costing system to an activity based costing system that contains some...

When switching from a traditional costing system to an activity based costing system that contains some batch-level costs
  • the unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase
  • the unit product costs of both high and low volume products typically decrease 
  • the unit product costs of both high and low volume products typically increase 
  • the unit product costs of high volume products typically ncrease and the unit product costs of low volume products typically decrease

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Expert Solution

Solution :

When switching from a traditional costing system to an activity-based costing system that contains some batch-level costs "The unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase"

Hence first option is correct.

ekkarill92 answered 2 years ago
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