ECONOMICS

COST ACCOUNTING

INTRODUCTION TO COST ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Calculate fixed overhead costs per unit cost to produce the chair?
A
RM 10.00
B
RM 20.00
C
RM 30.00
D
RM 40.00
Explanation: 

Detailed explanation-1: -Calculate fixed cost per unit by dividing the total fixed cost by the number of units for sale. Example: ABC Dolls has 6, 000 dolls available for customer purchase. To determine the average fixed cost, divide $85, 200 (the total fixed cost) by 6, 000 (the number of units for sale).

Detailed explanation-2: -Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.

Detailed explanation-3: -Fixed cost = Total cost of production-(Variable cost per unit x number of units produced)

There is 1 question to complete.