As Compared to a Low-volume Product a High-volume Product
Low profit margins means you may be likely to sell more items. Requires use of direct labor hours as the primary cost driver to ensure proper allocation of overhead.
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Usually requires less special handling.
. Is usually responsible for more overhead costs per unit. Ad Find Deals on united hair product in Hair Care on Amazon. As compared to a high-volume product a low-volume product a.
Answer 1 of 5. Requires relatively fewer machine setups. As compared to a low-volume product a high-volume product requires use of direct labor hours as the primary cost driver to ensure proper allocation of overhead.
Usually requires less special handling. Increase the cost per unit for low volume products as compared to a traditional overhead allocation. As compared to a low-volume product a high-volume product.
Expert Answer 100 26 ratings. Is usually responsible for more overhead costs per unit. Usually requires less special handling.
Accounting questions and answers. As compared to a. High volume is large number of products being sold while low volume is opposite referring to less number of productsservices being sold.
Large volumes usually have less margins while low volumes have great margins. Assigning overhead using ABC will usually. Is usually responsible for more overhead costs per unit.
Requires relatively fewer machine setups. As compared to a high-volume product a low-volume product a. Usually requires less special handling.
Some products are high volume and low cost if they can be produced by machines cheaply and easily from heap products and sold at a large profit margin. The opposite would be low volume high cost. Is usually responsible for more overhead costs per unit.
High profit margins means you dont need to sell as many items to earn a good overall profit. Your strategy isnt set in stone so keep assessing it and change it up when necessary. Requires use of direct labor hours as the primary cost driver to ensure proper allocation of overhead.
Requires relatively more machine setups. Usually requires less special handling. As compared to a high - volume product a low - volume product A.
Using a mix of seller strategies may suit your business better.
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