What procedure does unit-based product costing use?
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 traces overhead costs to departments first, and then those costs are traced to products. This method allocates overhead based on the number of units produced, using departmental rates.

What Procedure Does Unit-Based Product Costing Use