Which of the following is a trait of a traditional cost management system?
A)unit-based drivers
B)tracing intensive
C)use of both financial and nonfinancial measures of performance
D)detailed activity information

Question

Quizplus · Accepted Answer

A traditional cost management system typically uses unit-based drivers, such as direct labor hours or machine hours, to allocate indirect costs to products or services. This approach tends to be less accurate and sophisticated compared to more modern approaches like activity-based costing (ABC), which uses detailed activity information to allocate costs. Tracing intensity and use of financial and nonfinancial measures of performance could apply to both traditional and modern systems.

Which of the Following Is a Trait of a Traditional