Which of the following items would be associated with both a traditional cost accounting information system and an activity based cost information system?
A)Overhead is assigned on a plant-wide rate based on direct labor hours.
B)Customer service costs are assigned to products using number of complaints as the activity driver.
C)Direct labor cost is assigned to products using direct tracing.
D)None of these.

Question

Quizplus · Accepted Answer

Direct tracing of labor cost is commonly used in both traditional cost accounting information systems and activity based cost information systems. Option A is associated with traditional costing while Option B is associated with activity based costing. Option D is incorrect as there is at least one common item between the two systems.

Which of the Following Items Would Be Associated with Both