The budgeted fixed manufacturing cost is divided by budgeted fixed manufacturing cost per unit to calculate : __________?
Correct answer: D. budgeted production units
- A. fixed material price
- B. variable materials price
- C. fixed production units
- D. budgeted production units
Explanation
Dividing budgeted fixed manufacturing cost by fixed manufacturing cost per unit removes the per-unit amount and leaves the planned number of production units. Thus the result is budgeted production units.
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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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