Which of the following is not true about unit costs?
A)Decision makers think in terms of total costs rather than unit costs.
B)Decision makers think in terms of unit costs rather than total costs.
C)Calculating unit cost is essential.
D)Unit costs are also known as average costs.
E)Managers can express costs in various ways.

Question

Quizplus · Accepted Answer

Decision makers think in terms of total costs rather than unit costs is the correct statement rather than thinking in terms of unit costs. Calculating unit costs is essential, and unit costs are also known as average costs. Additionally, managers can express costs in various ways, including as a percentage of revenues or as a fraction of output. However, decision-makers prioritize understanding the total costs of a project or operation to make informed decisions.

Which of the Following Is Not True About Unit Costs