Which of the following is typical of traditional costing systems?
A)Uses multiple cost drivers to allocate overhead.
B)It 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, such as direct labor hours or machine hours, to allocate overhead costs to products or services. This method is simpler and easier to implement than Activity Based Costing systems which use multiple cost drivers to allocate overhead.

Which of the Following Is Typical of Traditional Costing Systems