Which of the following is typical of traditional costing systems?
A)Uses multiple cost drivers to allocate overhead.
B)Is more complicated than Activity-Based Costing systems.
C)Is still the best way to allocate direct labour costs.
D)Uses a single cost driver to allocate overhead.

Question

Quizplus · Accepted Answer

Traditional costing systems typically use a single cost driver to allocate overhead, such as direct labor hours or machine hours. This method is simpler than Activity-Based Costing, which uses multiple cost drivers. However, it may not accurately reflect the true cost of products or services.

Which of the Following Is Typical of Traditional Costing Systems