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.