All of the Following Statements About an Operation-Costing System Are

All of the following statements about an operation-costing system are true except:

A) direct material and conversion costs are traced to each batch of product produced.
B) direct-material cost is traced to each batch produced.
C) conversion costs are applied to products on a departmental basis using a predetermined application rate.
D) batches of product pass sequentially through the same processes.
E) conversion activities are similar across product lines but direct materials differ significantly.