READING 5

Reading 5

Reading 5

According to this article the traditional technique of cost accounting concerns to the distribution of manufacturing overhead costs to the products manufactured. The traditional technique (also recognized as the conventional method) consigns or allocates the factory's indirect costs to the pieces manufactured on the basis of volume like the number of units produced, the direct labor hours, or the production machine hours.

According to the author by applying only machine hours to assign the manufacturing overhead to products, it is entailing that the machine hours are the underlying cause of the factory overhead. Usually, that might have been ...