Which of the following items of Sorter Company's expenses and/or costs can be misleading if reported on a per unit of production and/or sales basis?
A) Direct labour
B) Direct materials.
C) Variable administrative expenses.
D) Fixed manufacturing overheaD.

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead costs are not directly related to the number of units produced, so reporting them on a per unit basis can be misleading. The other expenses and costs listed are more directly linked to production or sales volume, and thus can be accurately reported on a per unit basis.

Which of the Following Items of Sorter Company's Expenses And/or