In a Simple Activity-Based Product Costing System

Multiple Choice

In a simple activity-based product costing system:

A) direct material, direct labour, manufacturing overhead and non-manufacturing overhead are assigned to products on an activity basis.
B) direct material is traced using a traditional approach, while direct labour, manufacturing overhead and non-manufacturing overhead are assigned to products on an activity basis.
C) direct material and direct labour are traced using a traditional approach, manufacturing overhead is assigned on an activity basis and non-manufacturing overhead is expensed as it is incurred.
D) direct material, direct labour and manufacturing overhead are traced using a traditional approach, and non-manufacturing overhead is assigned on an activity basis.