How Are Unit Costs Calculated

question 64

Multiple Choice

How are unit costs calculated?

• A) by dividing total cost associated with the units produced by the unit cost
• B) by adding all variable costs per unit associated with the units produced
• C) by dividing total fixed costs by the number of units produced
• D) by dividing total cost associated with the units produced by the number of units produced
• E) by adding unit variable costs to total fixed costs

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Definitions:

Dimensional-analysis

A mathematical technique used to convert units of measurement without changing the dimensional or physical value.

Kilometers

A unit of length in the metric system equal to 1,000 meters, often used to measure distances.

Miles

Units of distance measuring 5,280 feet, or approximately 1.609 kilometers, commonly used in the United States.

Dimensional-analysis

A mathematical technique used to convert one set of units to another, facilitating computations and solving problems.