BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Company Top Pups sells its products at a price of € 20. The variable cost per unit are €5. The Total Fixed Costs are €50, 000. The normal production is 20, 000 units.Under direct costing a finished product has the following inventory value:
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€ 2.50
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€ 7.50
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€ 5
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€20
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Explanation:
Detailed explanation-1: -What is the total cost of production of 20 units, if fixed cost is Rs. 5, 000 and variable cost is Rs. 2/-? a)5400b)5040c)4960d)5020Correct answer is option ‘B’.
Detailed explanation-2: -Variable Cost Formula. To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.
Detailed explanation-3: -Fixed cost = Total cost of production-(Variable cost per unit x number of units produced)
There is 1 question to complete.