To identify the cause of a change in a product total unit cost,management may:
A)Compute per unit product cost in total.
B)Compute per unit total cost.
C)Compute per unit product cost for each individual production department.
D)Compare prior period to current period per unit product cost in total.

Question

Quizplus · Accepted Answer

Computing per unit product cost for each individual production department can help identify which department may be causing the change in total unit cost. This can allow management to investigate and address any issues in that department. The other options may not provide enough detail or specificity to pinpoint the cause of the change.

To Identify the Cause of a Change in a Product