COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost of a unit.
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Direct material and direct labour per unit.
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Total expenditure incurred by a company to produce one unit of a particular product.
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Total expenditure incurred by a company to produce, store, and sell one unit of a particular product.
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Detailed explanation-1: -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.
Detailed explanation-2: -Production costs, which are also known as product costs, are incurred by a business when it manufactures a product or provides a service. These costs include a variety of expenses.
Detailed explanation-3: -Cost per unit = (Electricity + Rent + Labor + Raw materials) / Number of units.
Detailed explanation-4: -The unit cost or cost per unit is referred to as the price spent by the company to produce, store, and sell each unit of a particular product. The unit cost includes all the variable costs and fixed costs involved during production. Unit cost is the minimum cost incurred for buying any standard unit.
Detailed explanation-5: -Cost unit, also known as the cost per unit, the cost of goods sold or the cost of sales, is the amount of money that a company invests in manufacturing a single unit of a saleable product.