Would it be likely that materials handling costs and product Inspections costs would be in the same activity cost-pool? Why or why not? As an expert in cost accounting, would you be likely to recommend an Activity-Based Costing system to a company that manufactures a single product? Why or why not? Overcosting some products while undercosting other products is most likely the result of misallocating: direct material costs indirect costs both direct material costs and direct labor costs direct labor costs