Question

When switching from a traditional costing system to an activity based costing system that contains some batch-level costs

• the unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase
• the unit product costs of both high and low volume products typically decrease 
• the unit product costs of both high and low volume products typically increase 
• the unit product costs of high volume products typically ncrease and the unit product costs of low volume products typically decrease

Answer 1

Solution :

When switching from a traditional costing system to an activity-based costing system that contains some batch-level costs "The unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase"

Hence first option is correct.