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A company produces three products; if one product is overcosted then:____.

a. one product is undercosted.
b. one or two products are undercosted.
c. two products are undercosted.
d. no products are undercosted.

1 Answer

3 votes

Answer:

b one or two products are under costed.

Step-by-step explanation:

If a company produces three products, & one product is over costed. Then, The company must have had one or two products, that are under costed.

As, if the company under costs a product. Then, it over costs the other products, for covering the lack of profit margins arising from under costing of former product.

User Barry Meijer
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