Which of the Following Statements Concerning the Unit Product Cost

question 23

Multiple Choice

Which of the following statements concerning the unit product cost of Product X4 is true?

• A)The unit product cost of Product X4 under traditional costing is less than its unit product cost under activity-based costing by $189.12.
• B)The unit product cost of Product X4 under traditional costing is less than its unit product cost under activity-based costing by $2.79.
• C)The unit product cost of Product X4 under traditional costing is greater than its unit product under activity-based costing by $189.12.
• D)The unit product cost of Product X4 under traditional costing is greater than its unit product under activity-based costing by $2.79.

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Definitions:

Debit Balance

A financial situation where the total debits exceed the total credits in an account, resulting in a positive account balance.

Inventory

Assets held for sale in the ordinary course of business, as well as materials and supplies used in producing goods available for sale.

Chart of Accounts

The Chart of Accounts is an organized list of all accounts in the general ledger of a company, used for recording transactions and building financial statements, categorized by assets, liabilities, equity, revenues, and expenses.

Merchandising Business

A type of business that purchases finished products and sells them to consumers, making a profit from the markup.