Indicate Whether Each of the Following Statements Is True or False

Essay

Indicate whether each of the following statements is true or false.
In an automated environment,use of a volume-based cost driver may undercost high-volume products._____
In an automated environment,an activity-based cost driver would provide for more accurate allocation of setup costs than would a volume-based cost driver._____
Activity-based costing is probably not cost beneficial for a company that makes very similar products._____
In an automated manufacturing environment,use of a volume-based cost driver could lead managers to make poor decisions._____
Activity-based costing always delivers significantly more accurate cost allocation than does volume-based costing._____