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The Main Difference (Or Differences) Between How Traditional Costing and Activity

Question 22

Multiple Choice

The main difference (or differences) between how traditional costing and activity based costing treat indirect manufacturing costs is (are) that


A) Traditional costing uses only production volume based drivers while activity based costing uses only non production volume based drivers.
B) Traditional costing treats only unit level costs as variable, while abc systems treat unit level, batch level and product level costs as variable.
C) Traditional cost allocations are usually based on a plant wide overhead rate, while abc systems use departmental overhead rates.
D) A and b.

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