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 consisteryly shown that volume-based costing the cost of high volume products and the cost of low volume products. High Volume Products Low Volume Products A. Overstates Overstates B. Overstates Understates C. Understates Overstates D. Understates Understates A is correct B is correct C is correct D is correct