Under Absorption Costing,a Company Had the Following Unit Costs When

question 64

Multiple Choice

Under absorption costing,a company had the following unit costs when 8,000 units were produced. Compute the total production cost per unit under variable costing if 25,000 units had been produced.

• A)$31.75
• B)$27.25
• C)$26.25
• D)$24.25
• E)$17.50

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Definitions:

Drive-Reduction Theory

the idea that a physiological need creates an aroused state (a drive) that motivates an organismto satisfy the need

Physiological State

The condition of normal function of a living organism’s body, including its physical and chemical processes.

Motivational Arousal

The process of being internally stimulated to perform an action or behavior due to personal drive or desire.

Physiological Needs

Basic life needs required for human survival, such as air, water, food, shelter, and sleep, according to Maslow's hierarchy of needs.