Which of the Following Statements Concerning the Unit Product Cost

question 157

Multiple Choice

Which of the following statements concerning the unit product cost of Product N0 is true?

• A)The unit product cost of Product N0 under traditional costing is less than its unit product cost under activity-based costing by $3,494.65.
• B)The unit product cost of Product N0 under traditional costing is greater than its unit product under activity-based costing by $3,494.65.
• C)The unit product cost of Product N0 under traditional costing is less than its unit product cost under activity-based costing by $337.28.
• D)The unit product cost of Product N0 under traditional costing is greater than its unit product under activity-based costing by $337.28.

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Definitions:

Controlling Influence

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, typically seen in parent-subsidiary relationships.

Held-To-Maturity Securities

Debt securities that a firm has the intent and ability to hold until they mature rather than trading them.

Trading Securities

Financial instruments bought and held primarily for selling in the near term to profit from price changes.

Unrealized Gain (Loss)

The increase (gain) or decrease (loss) in the value of investments that a company holds, which have not yet been sold for a profit or a loss.