The overhead rates of the traditional functional-based product costing use
A)non-unit-based activity drivers.
B)unit-based activity drivers.
C)process costing.
D)job order costing.

Question

Quizplus · Accepted Answer

The traditional functional-based product costing uses unit-based activity drivers to allocate overhead costs to products. This means that the cost is divided by the number of units produced or the number of direct labor hours required for each product. Option A is incorrect because non-unit-based activity drivers are used in activity-based costing (ABC) systems. Option C refers to a specific method of costing used primarily in process industries. Option D is a different costing method that assigns costs to specific jobs or orders rather than to products. Therefore, option B is the correct answer.

The Overhead Rates of the Traditional Functional-Based Product Costing Use