Which of the following statements would be associated with both a functional-based cost accounting information system and an activity-based cost information system?
A)Overhead is assigned on a plant-wide rate based on direct labour hours.
B)Customer service costs are assigned to products using number of complaints as the activity driver.
C)Direct labour cost is assigned to products using direct tracing.
D)Direct materials costs are allocated to product.

Question

Quizplus · Accepted Answer

Both functional-based and activity-based cost accounting systems use direct tracing to assign direct labor costs to products, as it accurately reflects the actual work done on the product.

Which of the Following Statements Would Be Associated with Both