Question

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.

Answer 1

Answer:

b one or two products are under costed.

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.