Question 3.3. Volume-based costing allocates indirect product costs based on the volume of output, using such allocation bases as direct labor hours, machine hours, and the amount of direct material used in the production process. Activity-based costing (ABC) has consistently shown that Volume-based costing (Points : 1)

overstates high volume products. overstates low volume products. understates high volume products. understates low volume products. More than one of the above is true.