The product which requires low amount of resources, but incur high per unit cost is classified as __________?
Correct answer: A. product over costing
- A. product over costing
- B. expected over cost
- C. product under costing
- D. expected under cost
Explanation
A product is overcosted when it is assigned more cost than the resources it actually consumes. Products using relatively few resources but receiving high allocated costs are therefore subject to product overcosting.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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