Which of the following statements is false?
A) Traditional costing systems tend to over cost high-volume product lines.
B) Traditional costing systems tend to create a product cost distortion problem.
C) In traditional costing, the high-volume products are often subsidising the low-volume products.
D) Traditional product costing systems recognise a range of non-volume-based cost drivers.

Question

Quizplus · Accepted Answer

Traditional product costing systems typically only recognise volume-based cost drivers, such as direct labor hours or machine hours, and do not include non-volume-based cost drivers, such as complexity or special features.

Which of the Following Statements Is False