Most traditional cost accounting systems do an excellent job of providing clear and concise information on just where funds are spent on quality-related expenses.

Question

Quizplus · Accepted Answer

Traditional cost accounting systems are designed to focus on direct costs such as materials and labor, and often do not capture the indirect costs related to quality, such as rework or scrap. Therefore, they may not provide a complete picture of quality-related expenses.

Most Traditional Cost Accounting Systems Do an Excellent Job of Providing