There Are Several Criticisms of Traditional Cost Accounting Systems

Multiple Choice

There are several criticisms of traditional cost accounting systems.One criticism is that the traditional cost system uses a volume-driven base,such as direct labor or machine hours,to apply overhead to products.What is the drawback to the use of such a measurement in a traditional cost accounting system?

A) The cost accountant may not fully understand how to track direct labor or machine hours.
B) It is difficult for an AIS to incorporate such a measurement into its system.
C) It is difficult for an ERP to incorporate such a measurement into its integrated system.
D) Many overhead costs are incorrectly allocated to products since they do not vary with production volume.