Many traditional costing systems:

a. produce results far superior to those achieved with activity-based costing. write off manufacturing overhead as an expense of the current period.

b. use a host of different cost drivers (e. g., number of production setups, inspection hours, orders processed) to improve the accuracy of product

c. costingbine widely varying elements of overhead into a single cost pool.

d. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates.

Question

Business

Samara Mclean

7 February, 08:01

Many traditional costing systems:

a. produce results far superior to those achieved with activity-based costing. write off manufacturing overhead as an expense of the current period.

b. use a host of different cost drivers (e. g., number of production setups, inspection hours, orders processed) to improve the accuracy of product

c. costingbine widely varying elements of overhead into a single cost pool.

d. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates.

+3

Answers (2)

Know the Answer?

Cora Vasquez · Answer 1

Cora Vasquez 7 February, 08:13

0

The answer to the question is A

Alani Woodward · Answer 2

The correct answer is letter "D": combine widely varying elements of overhead into a single cost pool.

Explanation:

The traditional costing system is an accounting method to calculate the costs and expenses of a company. The main characteristic of this approach relies on how overhead - difficult costs to calculate but are part of the production process such as rent or utilities - is calculated. The total cost of overhead is pooled to be divided by the total direct labor measured in dollars and, in such a way, calculate the overhead cost per unit produced.