Which statement is FALSE? Activity-Based Costing includes non-manufacturing costs in product costs, so the inventory in the balance sheet will be higher under ABC than under traditional costing. Job costing does not consider non-manufacturing costs when recording product costs Activity-Based Costing can improve the accuracy of product cost in a Job Costing setting more than in process costing. None of above Increasing the number of indirect cost pools under ABC does not necessarily increase the accuracy of product costs.

A job cost accounting system is suitable for similar products that are mass produced. True False

Which of the following statements is false? (You may select more than one answer.)a. In recent years, most companies have experienced increasing manufacturing overhead costs in relation to direct labor costs.b. Activity-based costing systems may use direct labor-hours and/or machine-hoursto assign unit-level costs to products.c. Facility-level costs are not caused by particular products.d. Product-level costs are larger for high-volume products than for low-volumeproducts.

Overhead application to costs is a critical issue for the costing of your products. We are studying several ways to handle this situation. What would cause an overhead to be overapplied, or underapplied. Discuss the results to your decision making and the financial statements for each of those two situations.