Which of the following are usually included in traditional cost systems?
i. Direct material is traced to products.
ii. Non-manufacturing costs are assigned to products.
iii. Manufacturing overhead is allocated using a production-volume-based cost driver.
A) i
B) ii
C) iii
D) i and iii

Question

Quizplus · Accepted Answer

Traditional cost systems typically trace direct material costs to products, and allocate manufacturing overhead costs using a production-volume-based cost driver. Non-manufacturing costs are typically not assigned to products in traditional cost systems.

Which of the Following Are Usually Included in Traditional Cost