In activity-based costing, unit product costs computed for external financial reports do NOT include:
A)direct materials.
B)direct labor.
C)manufacturing overhead.
D)selling costs.

Question

Quizplus · Accepted Answer

Unit product costs computed for external financial reports do not include selling costs as they are considered period costs and are expensed in the period they are incurred, rather than being allocated to the cost of a particular product or service. The unit product costs calculated using activity-based costing only include direct materials, direct labor, and manufacturing overhead.

In Activity-Based Costing, Unit Product Costs Computed for External Financial