Which Is NOT a Characteristic of a Unit-Based Costing System

question 34

Multiple Choice

Which is NOT a characteristic of a unit-based costing system?

• A) It uses traditional product costing definitions.
• B) It uses unit-based activity drivers to assign overhead to products.
• C) It is cheaper than an activity-based costing system.
• D) It offers greater product costing accuracy than an activity-based costing system.

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Definitions:

Matched Unit

This term refers to components or parts engineered to work together seamlessly, often to achieve a particular function or efficiency.

Diagnosed Defective

Identified as not functioning correctly or failing to meet performance standards through diagnostic testing.

Tandem Drive Axle

A configuration of two axles mounted close together, often found on trucks, to increase load capacity and distribute weight evenly.

Rear Differential Carrier

A component in a vehicle's drivetrain that houses the differential, facilitating power transfer from the driveshaft to the rear axles while allowing them to rotate at different speeds.