Unit costs are calculated by:
A) dividing the total costs associated with the units produced by the overhead cost.
B) adding all the variable costs per unit associated with the units produced.
C) subtracting total fixed costs from the applied overhead.
D) dividing the process costs for the given period by the output of the period.
E) multiplying unit variable costs and estimated overhead.

Question

Quizplus · Accepted Answer

Unit costs are calculated by dividing the process costs for the given period by the output of the period. This calculation takes into account both fixed and variable costs and provides a more accurate reflection of the cost of each unit produced. The other options either focus only on variable costs or do not take into account all costs associated with production.

Unit Costs Are Calculated By