Indicate whether each of the following statements is true or false.

____ In an automated environment, use of a volume-based cost driver may undercost high-volume products.

____In an automated environment, an activity-based cost driver would provide for more accurate allocation of set-up costs than would a volume-based cost driver.

____ Activity-based costing is probably not cost beneficial for a company that makes very similar products.

____ In an automated manufacturing environment, use of a volume-based cost driver could lead managers to make poor decisions.

____ Activity-based costing always delivers significantly more accurate cost allocation than does volume-based costing.

_____ A special order decision involves an offer to purchase goods at a price that is lower than normal.

_____ To analyze a special order decision, a manager should identify differential costs and revenues.

_____ A special order should be accepted if avoidable costs exceed differential revenue.

_____ Availability of idle capacity is often relevant to special order decisions.

_____ Alternative uses for facilities should be considered in making a special order decision.