If management wants the most accurate product cost, which of the following costing methods be used? a.

Question:

If management wants the most accurate product cost, which of the following costing methods be used?
a. Volume-based costing using departmental overhead rates
b. Volume-based costing using a plant wide overhead rate
c. Normal costing using a plant wide overhead rate
d. Activity-based costing
2. Which costing method tends to overstate the cost of high-volume products?
a. Traditional volume-based costing
b. Activity-based costing
c. Job order costing
d. Differential costing
3. Disadvantages of activity-based costing include
a. It is not acceptable under
b. It can be costly to implement.
c. It can be used in an activity-based management for external reporting.
d. Both a. and b.
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...