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:

Work in Process Inventory

Represents the costs of unfinished goods in manufacturing at various stages of production.

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services, not including indirect labor costs like maintenance.

Work in Process Costs

Costs assigned to goods that are in the process of being manufactured but are not yet complete.

Manufacturing Costs Assigned

The allocation of manufacturing costs to individual products or job orders based on direct materials, direct labor, and applied overhead.