Answer :
Traditional costing system does not assign selling and administrative costs to products when computing product margin.
What is Traditional costing system?
The allocation of factory overhead to goods based on the quantity of production resources used is known as traditional costing. With this method, overhead is typically calculated based on the number of hours of direct labor or the number of hours of machine utilization.
What are the two traditional costing methods?
The traditional costing system and the activity-based costing system are the two fundamental costing methods that assist in identifying all direct and indirect costs so that you may determine prices with accuracy. Although both techniques are useful accounting tools, each one offers a different set of advantages and disadvantages.
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