The calculation of unit costs is important for
A)inventory valuation.
B)income determination.
C)pricing.
D)all of the above.

Question

Quizplus · Accepted Answer

The calculation of unit costs is important for all the mentioned reasons - inventory valuation, income determination, and pricing. The cost per unit influences the value of inventory on the balance sheet, the calculation of cost of goods sold and gross profit in the income statement, and helps in determining the pricing strategy for products or services.

The Calculation of Unit Costs Is Important for