Why Do Accountants Normally Calculate Cost Per Unit as an Average

question 24

Multiple Choice

Why do accountants normally calculate cost per unit as an average?

• A) Determining the exact cost of a product is virtually impossible.
• B) Some manufacturing-related costs cannot be accurately traced to specific units of product.
• C) Even when producing multiple units of the same product, normal variations occur in the amount of materials and labor used.
• D) All of these are justifications for computing average unit costs.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.