A Company Is Comparing the Cost of Two Products Determined

question 124

Multiple Choice

A company is comparing the cost of two products determined under a traditional costing system and an activity-based costing system.Let's assume the production process is very lengthy and complicated for both products.The following information is obtained: Based on these computations,what can you conclude?

• A)Both costing systems provide accurate measures of cost per unit for each product.
• B)Benchmarking should be used.
• C)The activity-based costing system is probably more accurate than the other system.
• D)The traditional costing system is probably more accurate than the other system.

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