Which of the Following Statements Concerning the Unit Product Cost

question 69

Multiple Choice

Which of the following statements concerning the unit product cost of Product W2 is true?

• A)The unit product cost of Product W2 under traditional costing is less than its unit product cost under activity-based costing by $209.06.
• B)The unit product cost of Product W2 under traditional costing is greater than its unit product under activity-based costing by $12.41.
• C)The unit product cost of Product W2 under traditional costing is greater than its unit product under activity-based costing by $209.06.
• D)The unit product cost of Product W2 under traditional costing is less than its unit product cost under activity-based costing by $12.41.

---

Definitions:

Sales

The total amount of goods and services sold by a company during a specified financial period, reflecting the company's ability to generate revenue.

Marketable Securities

Financial instruments that can be easily converted to cash without losing much value.

Long-term Debt

Borrowings that are due for repayment after more than one year, used to finance a company's operations and growth.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used by businesses to manage liquidity and ensure they can meet their cash requirements.