Under Absorption Costing, a Company Had the Following Unit Costs

question 59

Multiple Choice

Under absorption costing, a company had the following unit costs when 9,000 units were produced. Compute the total product cost per unit under variable costing if 30,000 units had been produced.

• A) $31.75
• B) $28.25
• C) $23.45
• D) $15.25
• E) $20.75

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Definitions:

Direct Approach

A communication strategy that involves stating the main point or request at the beginning of the message for clarity and immediacy.

Negative Message

Communication that conveys a refusal, rejection, or other unpleasant information.

Sincere Apology

An expression of remorse that is honest and deeply felt, meant to make amends for a mistake or transgression.

Negative News Message

Communication designed to convey unfavorable information, decisions, or feedback in a manner that is sensitive to the recipient's feelings and possibly mitigates negative reactions.