The correct answer is: C. Product under costing
A product under costing is a product that requires low amounts of resources, but incurs high per unit costs. This can happen for a number of reasons, such as:
- The product may be very complex to manufacture, requiring a lot of specialized equipment and skilled labor.
- The product may use expensive materials.
- The product may be produced in small quantities, which drives up the per unit cost.
Product under costing can be a problem for businesses, as it can lead to losses. Businesses need to carefully monitor their costs and make sure that they are not overcharging for products that are under costing.
Option A: Expected under cost is incorrect because it refers to a product that is expected to cost less than it actually does.
Option B: Expected over cost is incorrect because it refers to a product that is expected to cost more than it actually does.
Option D: Product over costing is incorrect because it refers to a product that incurs high per unit costs, but requires a high amount of resources.