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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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innthomas00158

Answer:

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.