Which of the following is true of a unit-based costing system?
A)It estimates the time to perform one unit of activity.
B)It measures the demands that cost objects place on support activities.
C)It assigns only manufacturing costs to products.
D)It offers greater product costing accuracy than an activity-based costing system.

Question

Quizplus · Accepted Answer

A unit-based costing system assigns only manufacturing costs to products, whereas an activity-based costing system assigns both manufacturing and non-manufacturing costs to products. Option A is incorrect because estimating the time to perform one unit of activity is a feature of time-driven activity-based costing, not unit-based costing. Option B is incorrect because measuring the demands that cost objects place on support activities is a feature of activity-based costing, not unit-based costing. Option D is incorrect because activity-based costing generally offers greater product costing accuracy as it considers both direct and indirect costs.

Which of the Following Is True of a Unit-Based Costing