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23 May, 04:33

Overhead allocation based solely on a measure of volume such as direct labor-hours:

A. is a key aspect of the activity-based costing model.

B. will systematically overcost high-volume products and undercost low-volume products.

C. will systematically overcost low-volume products and undercost high-volume products.

D. must be used for external financial reporting.

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  1. 23 May, 04:57
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    A. is a key aspect of the activity-based costing model.

    Explanation:

    Activity Based costing (ABC) method identifies key activities and allocates cost based on such activities.

    The ABC model is considered to be a more logical and relevant approach to overhead allocation than traditional model.
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