Unit Variable Cost Refers to Variable Cost Expressed

question 157

Multiple Choice

Unit variable cost refers to variable cost expressed

• A) as the sum of all units sold.
• B) on a per unit basis for a product.
• C) as a percentage of total sales.
• D) as a percentage of fixed costs.
• E) as a percentage of total costs.

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Definitions:

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, and overhead costs associated with partially completed goods as if they were finished.

Weaving Department

A specialized division in a manufacturing facility where threads are interlaced to make textiles or fabric.

Weighted Average Method

A cost accounting method that averages all costs of inventory available for sale during the period and assigns the average cost to both ending inventory and cost of goods sold.