________ systems are capable of producing reasonably accurate costs where significant costs are incurred on different activities within a department but the same cost driver applies to all the activities in the department.
A)Traditional
B)ABC
C)Financial accounting
D)Management accounting

Question

Quizplus · Accepted Answer

Traditional systems allocate costs based on a single cost driver, such as direct labor hours or machine hours, which works well when significant costs are incurred on different activities within a department but the same cost driver applies to all activities in the department. This is a more simple and less precise method of cost allocation than ABC, but may be sufficient for some companies' cost management needs. Financial accounting and management accounting are not relevant to this specific question.

________ Systems Are Capable of Producing Reasonably Accurate Costs Where