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

Question

Quizplus · Accepted Answer

Unit-based costing system may not offer greater accuracy than activity-based costing system because it assigns overhead costs based on a single unit of production, whereas activity-based costing system assigns costs based on various activities involved in the production process.

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