Computing unit fixed costs may result in misleading information.

Question

Quizplus · Accepted Answer

Computing unit fixed costs do not provide information on the total cost of producing a product or service. Additional costs such as variable costs, overhead costs, and indirect costs must also be considered to get a complete picture of the total cost of production. Focusing solely on fixed costs can result in misleading information and incomplete analysis of a company's financial health.

Computing Unit Fixed Costs May Result in Misleading Information