In manufacturing companies, the revenue and cost drivers are categorized under ____________?
Correct answer: C. number of units sold
- A. variable costs
- B. costs of goods sold
- C. number of units sold
- D. all of above
Explanation
For many manufacturing cost-volume-profit analyses, the number of units sold is the main driver of both revenue and unit-related costs. Therefore, option c is the intended answer.
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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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