All of the following statements about an operation$-$costing system are true except:

A$.$ batches of product pass sequentially through the same processes.

B$.$ direct$-$material cost is traced to each batch produced.

C$.$ conversion activities are similar across product lines but direct materials differ significantly.

D$.$ direct material and conversion costs are traced to each batch of product produced.

E$.$ conversion costs are applied to products on a departmental basis using a predetermined application rate.