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:

Calendar Quarter

A period of three months on the calendar used for financial and business reporting, starting from the beginning of January, April, July, or October.

Form W-2

An annual form issued by employers to each employee, reporting the employee's yearly wages and the amount of taxes withheld from their paycheck.

Federal Unemployment Taxes

Taxes imposed on employers to fund the federal government's oversight and support of state unemployment insurance programs.