If a Job Consists of a Batch of Identical Units

question 88

Multiple Choice

If a job consists of a batch of identical units, how can managers find the unit cost?

• A)By tracing direct materials to each unit
• B)By multiplying the total job cost by the number of units in the job
• C)By dividing the total job cost by the number of units in the job
• D)By tracing direct labor to each unit

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Definitions:

Materials Management

The branch of logistics that focuses on physically sourcing, moving, and storing materials, as well as coordinating these operations to ensure the right materials are available at the right time.

Logistics Function

The specific tasks and operations within logistics, focusing on the efficient and effective movement and storage of goods.

Time Utilities

The value added to products or services by making them available when they are needed or wanted by consumers.

Place Utilities

The value added to products by having them available at locations where they are needed or wanted by consumers.