Unit-Based Product Costing Uses Which of the Following Procedures

question 128

Multiple Choice

Unit-based product costing uses which of the following procedures?

• A) Overhead costs are traced to departments, then costs are traced to products.
• B) Overhead costs are traced to activities, then costs are traced to products.
• C) Overhead costs are traced directly to products.
• D) All overhead costs are expensed as incurred.

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Definitions:

Determinism

The theory that all events, including human behavior, are ultimately determined by causes external to the will; some philosophers argue that this implies the absence of free will.

Free Will

The concept that humans are capable of making choices independent of external forces or predestination.

Predictable

Capable of being forecasted with a high degree of accuracy; the quality of being known before it happens.

Determinism

The philosophical doctrine that all events, including human action, are ultimately determined by causes external to the will.