Unit-based product costing uses which of the following procedures?
A) Overhead costs are traced to departments, then costs are traced to products.
B) Overhead costs are traced to activities, then costs are traced to products.
C) Overhead costs are traced directly to products.
D) All overhead costs are expensed as incurred.

Question

Quizplus · Accepted Answer

Unit-based product costing involves tracing overhead costs to departments first, and then allocating those costs to products based on some measure of activity or usage within each department.

Unit-Based Product Costing Uses Which of the Following Procedures