Which of the following statements regarding traditional cost accounting systems is False?
A) Products are often over or under costed in traditional cost accounting systems
B) Most traditional cost accounting systems do not trace individual costs to products
C) The advantage of traditional cost accounting systems is their simplicity
D)Traditional cost accounting systems can be sufficient to meet managers' cost information needs as long . as the level of indirect costs is relatively high compared to the level of direct costs

Question

Quizplus · Accepted Answer

Traditional cost accounting systems may struggle to meet managers' cost information needs accurately when the level of indirect costs is high compared to direct costs, as these systems typically allocate indirect costs based on broad averages, rather than actual usage or causation.

Which of the Following Statements Regarding Traditional Cost Accounting Systems