The unit cost
A) is the total product costs divided by the number of units produced.
B) includes period costs.
C) is the total prime costs divided by the number of units produced.
D) is the total conversion costs divided by the number of units produced.

Question

Quizplus · Accepted Answer

The unit cost is calculated by dividing the total product costs by the number of units produced. This includes all costs directly associated with the production of the goods, excluding period costs which are not directly tied to the production process.

The Unit Cost