Product-cost cross-subsidization

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Product-cost cross-subsidization is costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted).

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Product-cost cross-subsidization. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted).