Demonstrate why expressing fixed costs on a per unit of activity basis is misleading and may result in faulty decisions.

Provide two reasons for an outdated costing system.

Why functional (or volume)- based costing approaches may produce distorted costs.

When using the general methods to estimate cost behavior,  A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.