Which of the following costs poses the most problems when using an actual cost system?
A)direct materials
B)overhead
C)direct labour
D)direct materials and direct labour

Question

Quizplus · Accepted Answer

Overhead costs pose the most problems when using an actual cost system because they are difficult to trace directly to specific products or activities. This can result in over- or under-allocation of overhead costs and make it difficult to accurately determine product costs. Direct materials and direct labour costs are generally easier to trace directly to specific products or activities.

Which of the Following Costs Poses the Most Problems When