If the total manufacturing cost is $40000 and the total units manufactured is 500 units, then the per unit cost would be __________?
Correct answer: A. $80
- A. $80
- B. $65
- C. $7
- D. $35
Explanation
Per-unit cost is found by dividing total manufacturing cost by total output: $40,000 ÷ 500 = $80 per unit. The other amounts do not use the stated cost and production volume correctly.
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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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