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.

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Definitions:

Long-Term Liabilities

Obligations or debts that a company is responsible for paying which are due more than one year in the future.

Total Liabilities & Equity

The sum of all financial obligations and owners' equity of a business, representing the sources of funding for its assets.

Common Size Income Statement

A financial statement that presents all items as a percentage of a common base figure, making it easier to analyze changes and compare financial performance over time.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating financial health.