The variable cost per unit is multiplied to the quantity of sold units to calculate ____________?
Correct answer: B. variable cost
- A. per unit cost
- B. variable cost
- C. fixed cost
- D. multiple cost
Explanation
Multiplying variable cost per unit by the number of units sold gives total variable cost. A per-unit figure becomes a total when multiplied by the quantity.
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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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