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).
