Asked by zachary kastner on May 17, 2024
Verified
Which of the following are usually included in traditional cost systems?
i. Direct material is traced to products.
ii. Non-manufacturing costs are assigned to products.
iii. Manufacturing overhead is allocated using a production-volume-based cost driver.
A) i
B) ii
C) iii
D) i and iii
Traditional Cost Systems
Costing methods that typically allocate overhead costs based on volume-related measures, without focusing on the activities that actually caused those costs.
Direct Material
Raw materials that can be directly traced to the production process of a specific product.
Manufacturing Overhead
All indirect costs associated with manufacturing beyond direct materials and direct labor, such as factory rent, utilities, and equipment depreciation.
- Learn the foundational concepts of activity-based costing (ABC) and distinguish how it varies from standard costing techniques.
- Recognize and organize different categories of costs and operations within Activity-Based Costing.
Verified Answer
Learning Objectives
- Learn the foundational concepts of activity-based costing (ABC) and distinguish how it varies from standard costing techniques.
- Recognize and organize different categories of costs and operations within Activity-Based Costing.
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