Which of the following is an attribute of traditional costing systems?
A)Raw materials are ordered in large quantities.
B)Production is completed in self-contained work cells.
C)Suppliers make frequent deliveries of small quantities of raw materials.
D)Management works with suppliers to ensure defect-free raw materials.

Question

Quizplus · Accepted Answer

Traditional costing systems rely on ordering raw materials in large quantities to benefit from economies of scale and reduce ordering costs.

Answer: D 
 Traditional costing systems often place greater emphasis on ensuring defect-free raw materials to reduce the cost of scrap and rework. However, this is not necessarily a unique attribute of traditional costing systems as it is also important in more modern costing systems.

Therefore, the best choice is A.

Which of the Following Is an Attribute of Traditional Costing