Which of the following statements is FALSE?
A) Traditional costing systems generally assign only production costs to products.
B) Traditional costing systems use a single cost pool for all indirect production costs.
C) Traditional cost systems work well with simple production processes.
D) Traditional cost systems allocate a cost pool to cost objects using multiple cost drivers.

Question

Quizplus · Accepted Answer

Traditional cost systems typically allocate overhead costs using a single cost driver (often machine hours or labor hours), not multiple cost drivers. This is a characteristic that distinguishes them from activity-based costing systems, which use multiple cost drivers to allocate costs more accurately.

Which of the Following Statements Is FALSE