Decision Makers Should Be Aware of Unit Costs, and When

question 7

True/False

Decision makers should be aware of unit costs, and when in doubt, they should convert all unit costs into total costs under each alternative to get "the big picture".

---

Definitions:

Job Costing

A method of costing that assigns expenses to specific jobs or projects.

Direct Labour

The workforce involved directly in manufacturing products or delivering services, whose costs are tied to the production output.

Manufacturing Overhead

Indirect costs associated with manufacturing, such as utilities, maintenance, and factory management salaries.

Job Costing

A costing method that determines the cost of a specific job or project, making it suitable for industries like construction, where products are customized.