Which of the Following Is Typical of Traditional Costing Systems

question 65

Multiple Choice

Which of the following is typical of traditional costing systems?

• A)Use of multiple cost drivers to allocate overhead
• B)It is more complicated than Activity Based Costing systems.
• C)Is still the best way to allocate direct labour costs
• D)Use of a single cost driver to allocate overhead

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Definitions:

Entrepreneurs

Individuals who identify a business opportunity and take the risk of creating and managing a new enterprise to capitalize on it.

Goals

Objectives or desired outcomes that an individual, group, or organization aims to achieve over a certain period of time.

Lower-level Managers

Managers who are at the first or intermediate levels of an organization's hierarchy and are directly responsible for overseeing operational activities and supervising frontline employees.

Broader Objectives

Goals or aims that are more inclusive and wide-ranging, extending beyond specific, narrow targets to encompass wider organizational or societal aims.