If the total manufacturing cost is $60000 and the total units manufactured is 3000 units, then the per unit cost will be ____________?
Correct answer: B. $20
- A. $40
- B. $20
- C. $60
- D. $80
Explanation
Per-unit manufacturing cost is calculated as total manufacturing cost divided by units manufactured: $60,000 ÷ 3,000 = $20 per unit.
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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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