Chapter C, Problem 7QS

Requirment-1

To determine

To Chose:

The best costing method which tends to overstate the cost of high-volume products, from the below

1. Traditional volume-based costing
2. Activity based costing
3. Job order costing
4. Differential costing

Requirment-2

To determine

To Chose:

The best costing method, if management wants the most accurate product cost,

Volume-based costing using direct labor hours to allocate overhead

Volume-based costing using a plant wide overhead rate

Normal costing a plant wide overhead rate

Activity-based costing

Requirment-3

To determine

To Chose:

Then Disadvantages of Activity-based costing from the below,

It is not acceptable under GAAP for external reporting

It can be costly to implement

It can be used in activity-based management

Both a. and b.