In a Process Cost Accounting System, the Average Unit Cost

question 10

True/False

In a process cost accounting system, the average unit cost of a product is determined by dividing the total manufacturing cost incurred by the number of units placed in production during the period.

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Definitions:

Nearest Tenth

Rounding to the closest tenth means adjusting a number to one decimal place.

Decimal

A number that includes a decimal point to represent a fraction of a whole.

Percentage

A way of expressing a number as a fraction of 100, denoted by the symbol %.

Lowest Terms

A fraction in which the numerator and denominator have no common factors other than 1, making it the simplest form of the fraction.