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Traditional Costing Systems

1. Consider the following statements regarding traditional costing systems: Indicate which are correct.

I. Overhead costs are applied to products on the basis of volume-related measures.
II. All manufacturing costs are easily traceable to the goods produced.
III. Traditional costing systems tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements.

A. I only

B. II only

C. III only

D. I and II

E. II and III

2.
In an attempt to cut non-value-added costs, companies may:

A. reduce the scope of selected activities.

B. eliminate selected activities.

C. combine selected activities

D. do A and B

E. do A, B, and C

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Traditional Costing Systems
1. Consider the following statements regarding traditional costing systems: Indicate which are correct.

I. Overhead costs are applied to products on the ...

Solution Summary

For your convenience, I have attached a formatted MS Word file containing examples of traditional costing systems.

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