Unit Costs for Each Job Are Computed by Dividing

question 17

Multiple Choice

Unit costs for each job are computed by dividing

• A) estimated total costs by planned units to be produced.
• B) actual costs by actual units sold.
• C) cost of direct materials, direct labor, and overhead by number of units produced.
• D) estimated total costs by actual units produced.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it over a given period of time.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good or service is sensitive to changes in its price.

Monopolistic Competitor

A type of market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed, extracting maximum consumer surplus.