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For a company with diverse products, under-costing overhead of a product will lead to product-cross...

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Accounting

For a company with diverse products, under-costing overhead of a product will lead to product-cross -subsidization, which means that:

direct labor costs of the product are over-allocated

direct material costs of the product are under-allocated.

indirect costs of another product are over-allocated.

indirect costs of another product are under-allocated.

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