If a Job Consists of a Batch of Identical Units

question 88

Multiple Choice

If a job consists of a batch of identical units, how can managers find the unit cost?

• A)By tracing direct materials to each unit
• B)By multiplying the total job cost by the number of units in the job
• C)By dividing the total job cost by the number of units in the job
• D)By tracing direct labor to each unit

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a market, determined by the forces of supply and demand.

Sacks

Bags made of various materials, typically used for storing or transporting items.

Profit Maximized

The point at which a firm's profit is at its highest because marginal cost equals marginal revenue.

Total Cost

The complete cost of production, including both fixed costs that do not change regardless of the output level and variable costs that increase or decrease with the level of production.