What Does an Accountant Need to Know to Calculate Unit

question 135

Multiple Choice

What does an accountant need to know to calculate unit cost?

• A)materials cost plus overhead
• B)the output for a period and the manufacturing costs for the department for that period
• C)conversion costs and prime costs
• D)total units produced by all departments

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Definitions:

Physical Flow

The movement of physical goods or materials within a production process or supply chain.

Ending Inventory

The total value of all the goods available for sale at the end of an accounting period.

Average Unit Cost

The cost incurred for producing a single unit, calculated by dividing the total cost of production by the number of units produced.

Units

A measure of quantity representing the amount of product or service.