How are unit costs calculated?
A)by dividing total cost associated with the units produced by the unit cost
B)by adding all variable costs per unit associated with the units produced
C)by dividing total fixed costs by the number of units produced
D)by dividing total cost associated with the units produced by the number of units produced

Question

Quizplus · Accepted Answer

Unit costs are calculated by dividing the total cost associated with the units produced by the number of units produced. This gives the cost per unit, which can help in determining pricing strategy and profitability.

How Are Unit Costs Calculated