How do you believe the different methods of tracing costs interfaces with the book’s discussion of both a traditional cost management system and an activity-based management system?

Much of what was discussed in Chapter 2 had to do with the types of cost assignment — direct tracing of costs, driver tracing of costs, and allocation of costs.  Please discuss you understanding of these types as they relate to a manufacturing company.  How do you believe the different methods of tracing costs interfaces with the book’s discussion of both a traditional cost management system and an activity-based management system? 

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