Which of the Following Is True of a Unit-Based Costing

question 74

Multiple Choice

Which of the following is true of a unit-based costing system?

• A)It estimates the time to perform one unit of activity.
• B)It measures the demands that cost objects place on support activities.
• C)It assigns only manufacturing costs to products.
• D)It offers greater product costing accuracy than an activity-based costing system.

---

Definitions:

Average Payoff

The expected outcome or return of an investment or decision averaged over all possible scenarios.

Expected Value

The predicted value of a variable, calculated as the weighted average of all possible values this variable can take; each value is weighted by its probability of occurrence.

Perfect Information

Perfect Information refers to a situation where all participants have comprehensive knowledge of all relevant aspects, eliminating uncertainty.

PHStat

A software tool that enhances Excel with statistics functions, making it easier to perform statistical analyses.