COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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per part of bicycle
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per bicycle
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per tonne
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per day
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Detailed explanation-1: -Cost unit applicable to the Bicycle industry is per bicycle. Cost of producing one bicycle involves the variable costs as well as fixed costs. The unit cost is referred to the cost incurred by a company to produce and sell one unit of a particular product.
Detailed explanation-2: -A Bicycle is also made of with various parts, therefore multiple costing method is used in the Industry.
Detailed explanation-3: -A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service. Unit costs are synonymous with cost of goods sold (COGS). This accounting measure includes all of the fixed and variable costs associated with the production of a good or service.