When traditional absorption costing is employed,which of the following is false?
A)In a multi-product organization,product costs are properly reported for financial reporting purposes
B)In a single product organization,product costs are properly reported for financial reporting purposes
C)In a multi-product organization,product costs are accurately reported for decision-making purposes
D)In a single product organization,product costs are accurately reported for decision-making purposes
E)None of the choices are correct

Question

Quizplus · Accepted Answer

Traditional absorption costing allocates overhead costs based on a single cost driver, which may not accurately reflect the consumption of resources by different products in a multi-product organization. This can lead to inaccurate product costing for decision-making purposes.

When Traditional Absorption Costing Is Employed,which of the Following Is