Which of the following items would be associated with both a functional-based cost accounting information system and an activity based cost information system?
A) Overhead is assigned on a plant-wide rate based on direct labor hours.
B) Customer service costs are assigned to products using number of complaints as the activity driver.
C) Direct labor cost is assigned to products using direct tracing.
D) None of these.

Question

Quizplus · Accepted Answer

Direct tracing is a common method used in both functional-based and activity based cost accounting information systems to assign direct labor costs to products. Option A is associated with functional-based cost accounting information system as it assigns overhead on plant-wide rate based on direct labor hours whereas option B is associated with activity-based cost information system as it assigns customer service costs to products using the number of complaints as the activity driver.

Which of the Following Items Would Be Associated with Both