If the cost per unit is $50 and the total number of units manufactured in company are 5000, then the total manufacturing cost will be __________?
Correct answer: C. $250,000
- A. $220,000
- B. $232,000
- C. $250,000
- D. $25,000
Explanation
Total manufacturing cost equals cost per unit multiplied by the number of units: $50 × 5,000 = $250,000. Option d is only $25,000 because it effectively omits one zero.
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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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