Which of the following statements is (are) true regarding the potential effects

Question

Which of the following statements is (are) true regarding the potential effects of using reported product costs for decision making?
(A) Traditional product costing systems (e.g., job and process costing) are designed primarily to accumulate cost information for financial reporting.
(B) If a single cost driver is used as the allocation base, applied manufacturing overhead for product costing purposes may lead to inappropriate managerial decisins.

a. Only A is true
b. Both A and B are true
c. Neither A nor B is true

Explanation / Answer

b. Both A and B are true
Thank you....

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