Question # 1 “The traditional costing system tends to place too much reliance on unit-level…

Question # 1
“The traditional costing system tends to place too much reliance on unit-level allocation bases which result in over-costing high volume products and under-costing low volume products. This can lead to adverse decisions on product costing and pricing. To address this issue, some authors have suggested using the Activity Based Costing method.”
Do you agree with the above statement? Discuss and provide relevant examples to support your answer.

Hint: Students are required to answer this question by referring to journal articles and/or books. Using identical examples from text books are not allowed.
Question # 2
Discuss the similarities and differences between the job order costing and the process costing systems. Identify the types of industries/companies that would use these systems for their organizations and the rationale for their decisions.
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