Unit-Level Product Costing Assigns

question 104

Multiple Choice

Unit-level product costing assigns

• A)direct materials and direct labor directly to products and assigns overhead to departmental pools which are assigned to products using predetermined overhead rates based on unit-level drivers.
• B)direct materials, direct labor and overhead to departmental cost pools which are assigned to products using predetermined overhead rates based on unit-level drivers.
• C)direct materials and direct labor directly to products and assigns overhead to departmental pools which are assigned to products using predetermined overhead rates based on non-unit level drivers.
• D)direct materials, direct labor and overhead to departmental cost pools which are assigned to products using predetermined overhead rates based on non-unit level drivers.

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Definitions:

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Declining-Balance Method

A method of calculating depreciation that results in larger depreciation charges in the early years of an asset's life and smaller charges later on.

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.

Units Produced

The total quantity of units manufactured during a specific period in a manufacturing or production process.