The cost of a unit produced in a process cost system is the sum of the costs incurred in each department divided by the number of output units.

Question

Quizplus · Accepted Answer

In a process cost system, the cost per unit is determined by dividing the total cost incurred in each department by the total number of units produced in that department. This helps in determining the actual cost of each unit.

The Cost of a Unit Produced in a Process Cost