Which of the following statement is FALSE?
A)Traditional product costing systems seek to assign all manufacturing costs to products.
B)ABC product costing systems seek to assign all manufacturing costs to products.
C)Cost distortions occur when a mismatch (incorrect association)occurs between the way indirect costs are incurred and the basis for their assignment to individual products.
D)Traditional product costing systems are more refined than an ABC system.

Question

Quizplus · Accepted Answer

Traditional product costing systems are generally less refined than Activity-Based Costing (ABC) systems. ABC systems are designed to provide more accurate cost information by assigning costs based on the activities that drive those costs, rather than using broader allocation bases that may oversimplify the costing process.

Which of the Following Statement Is FALSE