Why Do Accountants Normally Calculate Cost Per Unit as an Average

question 24

Multiple Choice

Why do accountants normally calculate cost per unit as an average?

• A) Determining the exact cost of a product is virtually impossible.
• B) Some manufacturing-related costs cannot be accurately traced to specific units of product.
• C) Even when producing multiple units of the same product, normal variations occur in the amount of materials and labor used.
• D) All of these are justifications for computing average unit costs.

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Definitions:

Disaffirmance

The legal act of renouncing or nullifying a contract or agreement, particularly by minors or those not completely competent to enter into a contract.

Tort of Deceit

A legal wrong involving intentional misrepresentation or concealment of truth leading to damage or harm to another party.

Mental Impairment

A condition affecting an individual's cognitive functions, potentially limiting their ability to perform daily tasks or make decisions.

Disaffirm

To reject or deny the validity or authority of something, especially a contract or agreement.