If management wants the most accurate product cost, which of the following costing methods be used?
a. Volume-based costing using departmental overhead rates
b. Volume-based costing using a plant wide overhead rate
c. Normal costing using a plant wide overhead rate
d. Activity-based costing
2. Which costing method tends to overstate the cost of high-volume products?
a. Traditional volume-based costing
b. Activity-based costing
c. Job order costing
d. Differential costing
3. Disadvantages of activity-based costing include
a. It is not acceptable under GAAP
b. It can be costly to implement.
c. It can be used in an activity-based management for external reporting.
d. Both a. and b.