When a company shifts from a traditional cost system in which manufacturing overhead is applied based on direct labor-hours to an activity-based costing system with batch-level and product-level costs, the unit product costs of high volume products typically decrease whereas the unit product costs of low volume products typically increase.

True

Explanation:

An activity based costing (ABC) system assigns resources to the different production activities, and then unit costs are determined by the proportion of the production activities that every unit requires.

This is a much more complex costing method than just assigning overhead costs based on direct labor hours or machine hours.

answer; read and consider the content of the items;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.