1. Which costing method tends to overstate the cost of high-volume products?

a. Traditional volume-based costing

c. Job order costing

b. Activity-based costing

d. Differential costing 2. If management wants the most accurate product cost, which of the following costing methods should be used?

a. Volume-based costing using direct labor hours to allocate overhead

b. Volume-based costing using a plantwide overhead rate

c. Normal costing using a plantwide overhead rate

d. Activity-based costing 3. Disadvantages of activity-based costing include

a. It is not acceptable under GAAP for external reporting.

b. It can be costly to implement

c. It can be used in an activity-based management

d. Both

a. and b.