COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Normal Cost ÷ Normal Output
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Total Cost ÷ Normal Output
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Normal Cost ÷ Total Output
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Total Cost ÷ Total Output
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Detailed explanation-1: -Unit cost is determined by combining the variable costs and fixed costs and dividing by the total number of units produced.
Detailed explanation-2: -Unit cost is the total cost incurred for production, sales, and storage of one unit. It is calculated by dividing the total cost of production by the total number of units produced.
Detailed explanation-3: -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.
Detailed explanation-4: -The general form of the cost function formula is C(x)=F+V(x) C ( x ) = F + V ( x ) where F is the total fixed costs, V is the variable cost, x is the number of units, and C(x) is the total production cost.