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

Question

Quizplus · Accepted Answer

This statement is false because conventional product costing systems usually only recognise volume-based cost drivers, such as direct labor hours or machine hours, rather than non-volume-based cost drivers like complexity, quality, and customer service.

Which of the Following Statements Is False