A Unit Cost Is Computed By

question 49

Multiple Choice

A unit cost is computed by:

• A)multiplying total cost by the number of units
• B)dividing total cost by the number of units
• C)dividing variable cost by the number of units
• D)adding variable cost to fixed cost

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.

Markdown

A reduction in the selling price of goods, often used as a strategy to clear inventory or stimulate sales.

Net Margin

A profitability metric calculated as net income divided by revenue, expressed as a percentage, indicating the percentage of revenue that translates into profit.

Full Selling Price

The total cost to the consumer to purchase a product or service, including any taxes, fees, or additional charges.