Product Unit Costs Computed Using Activity-Based Costing Compared to Product

question 23

Multiple Choice

.Product unit costs computed using activity-based costing compared to product unit costs computed using a traditional costing approach will

• A)sometimes be the same.
• B)always be higher.
• C)always be the same.
• D)always be lower.

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Definitions:

Excess Amortizations

An accounting term that describes the process of expensing benefits from assets at rates faster than their actual decline in value.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets, such as goods, services, or intangibles within the same legal entity.

Depreciation Purposes

The rationale behind allocating the cost of a tangible asset over its useful life, including tax benefits and accurate financial reporting.

Intra-Entity Transactions

Transactions occurring within the same legal entity, often accounted for in transfer pricing.