The selling price minus variable manufacturing cost per unit, minus variable marketing cost per unit is equal to _____________?
Correct answer: D. contribution margin per unit
- A. fixed margin per unit
- B. variable margin per unit
- C. contribution margin per batch
- D. contribution margin per unit
Explanation
Subtracting variable manufacturing and variable marketing costs from selling price leaves the contribution margin generated by one unit. Hence, the result is contribution margin 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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