Which of the Following Is Not Typical of Traditional Costing

question 72

Multiple Choice

Which of the following is not typical of traditional costing systems?

• A) Use of a single predetermined overhead rate.
• B) Use of direct labor hours or direct labor cost to assign overhead.
• C) Assumption of correlation between direct labor and incurrence of overhead cost.
• D) Use of multiple cost drivers to allocate overhead.

---

Definitions:

Cross Border

Refers to activities, transactions, or investments that occur between entities located in different countries.

Benchmark

A standard or point of reference against which the performance of an investment or mutual fund can be measured.

Foreign Exchange Risk

The risk of losing money due to unfavorable changes in exchange rates affecting investments or transactions in foreign currencies.