Many Traditional Costing Systems

Multiple Choice

Many traditional costing systems:

A) trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates.
B) write off manufacturing overhead as an expense of the current period.
C) combine widely varying elements of overhead into a single cost pool.
D) use a host of different cost drivers (e.g., number of production setups, inspection hours, orders processed) to improve the accuracy of product
E) produce results far superior to those achieved with activity-based costing.