To calculate budgeted fixed manufacturing cost per unit, the fixed budgeted manufacturing costs are divided to _____________?
Correct answer: A. budgeted production units
- A. budgeted production units
- B. indirect production units
- C. input material units
- D. accrued production units
Explanation
Budgeted fixed manufacturing cost per unit is computed by dividing total budgeted fixed manufacturing cost by the budgeted number of production units. The denominator must represent planned output for the period.
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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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