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

question 23

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 offers greater product costing accuracy than an activity-based costing system.
• D) It is cheaper than an activity-based costing system.

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Definitions:

Seasonal Factor

Variations in demand, supply, or other business indicators that occur at specific times of the year.

Forecasting Method

A process used to predict future values based on past and present data, often utilized in finance, weather prediction, and supply chain management.

Systematic Component

The part of a process or series that can be directly linked to specific casual factors, showing predictable patterns over time.

Random Component

In statistical models, the part of variation that cannot be attributed to any identifiable factors and appears without a discernible pattern.