Which of the Following Is a Correct Matching of Terms

question 13

Multiple Choice

Which of the following is a correct matching of terms?

• A)Depreciation of equipment is a batch-level cost
• B)Cutting a table leg is a unit-level cost
• C)Insurance is a product-level cost
• D)Package design is a production-sustaining cost
• E)None of the above

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Definitions:

Year 2

Typically refers to the second year in a given context, such as financial reporting, analysis, or planning.

Variable Costing

An accounting method that only includes variable production costs (costs that change with production levels) in product costs.

Unit Product Cost

The total cost associated with manufacturing a single unit of product, which includes direct materials, direct labor, and overhead.

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced, indicating the cost to produce each unit of product.