Each of the following statements is true EXCEPT:
A)traditional product costing systems seek to assign all manufacturing costs to products
B)ABC product costing systems seek to assign all manufacturing costs to products
C)traditional product costing systems are more refined than an ABC system
D)cost distortions occur when a mismatch (incorrect association)occurs between the way indirect costs are incurred and the basis for their assignment to individual products

Question

Quizplus · Accepted Answer

Traditional product costing systems are not more refined than ABC costing systems. In fact, ABC costing systems are considered to be more refined and accurate as they take into account multiple cost drivers instead of just one, and allocate costs more accurately.

Each of the Following Statements Is True EXCEPT