In which of the following may a traditional costing system result in?
A) The product costs are distorted
B) Complex products are under costed
C) Simple products are over costed
D) All the given answers

Question

Quizplus · Accepted Answer

A traditional costing system may result in distorted product costs, under costing of complex products, and over costing of simple products. This is because traditional systems typically allocate overhead based on a single, volume-based cost driver such as direct labor hours, which may not accurately reflect the actual usage of resources by different products or processes.

In Which of the Following May a Traditional Costing System