Unlike activity-based costing, traditional costing systems never use multiple cost pools for overhead allocation.

Name: Unlike activity-based costing, traditional costing systems never use multiple cost pools for overhead allocation.
Brand: Quizplus
Rating: 4.8 (29 reviews)

Question

Quizplus · Accepted Answer

Traditional costing systems typically use only one overhead cost pool for allocation, whereas activity-based costing uses multiple cost pools to provide a more accurate allocation of overhead costs to products or services.

Unlike Activity-Based Costing, Traditional Costing Systems Never Use Multiple Cost