Traditional Volume-based costing allocates indirect product costs based on the volume of output, using such allocation bases as direct labor hours, machine hours, or the amount of direct material used in the production process. Activity-based costing (ABC) has consistently shown that volume-based costing the cost of high-volume products and of low-volume products. Select one: a. Understates, Overstates b. Overstates, Understates c. none of the given answer. d. Understates, Understates e. Overstates, Overstates the cost