Management Accountants Use the Cost Hierarchy to First Calculate the Total

question 51

True/False

Management accountants use the cost hierarchy to first calculate the total costs of each product and then they derive per-unit costs by dividing total costs by the number of units produced.

---

Definitions:

Marketing Exchange

Marketing exchange is the process through which two or more parties give something of value to each other to satisfy their respective needs.

Nonprofit Organization

An organization whose primary goal is not to make a profit but to benefit the public or a specific group of people.

Financial Remuneration

Payment for work or services, including salaries, wages, bonuses, or other forms of compensation.

Exchange

The trade of things of value between buyer and seller so that each is better off after the trade.