Assume That the Company Uses a Variable Costing System That

question 10

Multiple Choice

Assume that the company uses a variable costing system that assigns $16 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:

• A)$104 per unit
• B)$174 per unit
• C)$88 per unit
• D)$213 per unit

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Definitions:

APS

An acronym for Average Propensity to Save, which is the ratio of savings to the total net disposable income.

Total Saving

The sum of personal, business, and government savings within an economy.

APS

Average Propensity to Save (APS) is the ratio of total savings to total disposable income, indicating the portion of income that households save rather than spend.

Total Saving

The total amount of income saved by individuals, businesses, and the government, not spent on current consumption.