Product costing systems are essential for determining production costs and pricing strategies in businesses. Overcosting can lead to customer loss, while undercosting relates to product cost cross-subsidization.
Product costing systems play a crucial role in determining the costs of production and pricing strategies adopted by businesses.
One true statement concerning product costing systems is that companies that overcost run the risk of losing customers due to pricing their products higher than perceived value, which can result in customer dissatisfaction and loss of market share.
Another key aspect is that undercosting or overcosting relates to product cost cross-subsidization where inaccuracies in product costing can lead to one product subsidizing the costs of another within a company's product line.
https://brainly.com/question/39093239