Q539
Product which requires large amount of resources, but incur low per unit cost is classified as
A.
product under costing
AnswerB.
product over costing
C.
expected under cost
D.
expected over cost
Answer: Option A
Solution
Answer: Option A
Solution:
Product which requires large amount of resources, but incur low per unit cost is classified as product under costing. Product cost refers to the costs incurred to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead.