How Is Unit Cost Calculated

question 148

Multiple Choice

How is unit cost calculated?

• A) total units divided by total costs
• B) sum of all cost drivers
• C) total cost divided by equivalent units produced
• D) total of all costs incurred

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Definitions:

UPA

Uniform Partnership Act, which is legislation adopted by some states in the USA to govern partnerships.

Limited Liability

A legal status where an individual's financial risk is restricted to a fixed amount, typically the value of their investment in a company, protecting personal assets from business debts.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, responsibilities, and liabilities.

Unlimited Liability

A legal structure in which business owners are personally responsible for all of the company's debts.