How are unit costs calculated for process costing and job-order costing?
A) by dividing total costs by the number of units produced
B) by dividing total fixed costs by the number of units produced
C) by adding total variable costs by the number of units produced
D) by dividing total production costs by the number of units produced

Question

Quizplus · Accepted Answer

Unit costs in process costing and job-order costing are calculated by dividing total production costs by the number of units produced. This includes both variable and fixed costs associated with production. Therefore, option D is the correct answer. Options A and C are incorrect as they only consider variable costs, and option B is incorrect as it only considers fixed costs.

How Are Unit Costs Calculated for Process Costing and Job-Order