When comparing absorption costing to variable costing, all of the below are disadvantages of traditional costing except:

A. There is only one overhead cost pool and a single measure of activity, such as direct labor hours, which makes the traditional method simple and less costly to maintain.

B. Traditional allocation assigns costs as period or product costs, and all product costs are included in the cost of inventory, which makes this method acceptable for GAAP.

C. The use of the single cost driver may overallocate overhead to one product and underallocate overhead to another product, resulting in erroneous total costs.

D. The use of the single cost driver does not allocate overhead as accurately as using multiple cost drivers.

Question 20 3 pts When comparing absorption costing to variable costing, all of the below are disadvantages of traditional costing except: There is only one overhead cost pool and a single measure of activity, such as direct labor hours, which makes the traditional method simple and less costly to maintain. Traditional allocation assigns costs as period or product costs, and all product costs are included in the cost of inventory, which makes this method acceptable for GAAP The use of the single cost driver may overallocate overhead to one product and underallocate overhead to another product, resulting in erroneous total costs. The use of the single cost driver does not allocate overhead as accurately as using multiple cost drivers