If products are alike,then for costing purposes:
A)a simple costing system will yield accurate cost numbers.
B)an activity-based costing system should be used.
C)multiple unit-level cost rates should be used.
D)varying demands will be placed on resources.

Question

Quizplus · Accepted Answer

If products are alike, it means they have similar production processes, require similar resources, and incur similar costs. In this case, a simple costing system, such as traditional costing, will be sufficient and yield accurate cost numbers. Activity-based costing or multiple unit-level cost rates may be necessary when there are significant differences in the production processes, resource requirements, or cost drivers among products. Varying demands on resources are not directly related to the choice of costing system for products that are alike.

If Products Are Alike,then for Costing Purposes