Which of the Following Would Most Likely Be a Unit-Level

question 50

Multiple Choice

Which of the following would most likely be a unit-level cost?

• A) Factory insurance
• B) Quality control
• C) Lubricants used on factory machinery
• D) Research and development costs for a new product line

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Definitions:

Journal Entry

A single record that reflects the debit and credit effects of a financial transaction in the accounting system.

Coupon Rate

The yearly interest yield on a bond, shown as a percent of the bond's nominal value.

Effective-Interest Method

An accounting method to amortize the discount or premium on bonds payable or receivable over the bond's life, reflecting a constant rate of interest.

Market Rate

The current price or interest rate at which a good, service, or financial asset can be bought or sold in a competitive market.