A Traditional Costing System Would Be Appropriate If a Company

question 54

Multiple Choice

A traditional costing system would be appropriate if a company ________.

• A)manufactures hundreds of different products
• B)has complex production operations
• C)manufactures simple and complicated products
• D)has a plausible and reliable relationship between a single cost driver and all the indirect resource costs being allocated

---

Definitions:

Online Businesses

Companies that operate on the internet, offering goods or services through websites or applications, often with a broader reach and lower operational costs compared to traditional businesses.

Domestic Freight Transportation

The movement of goods within a country's borders through various modes like trucks, trains, and ships.

Truck

A motor vehicle designed to transport cargo, varying in size, capacity, and configuration based on the specific requirements.

Tailored Transportation

Customized transportation solutions designed to meet the specific needs of a business or supply chain.