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Commerce · Q679

Costing

Graduate and Post Graduate · Commerce · question 679

Q679

Total costs incur in a production process, is divided by total number of output units to calculate the

A.
cost of indirect labour
B.
cost of direct labour
C.
cost of direct material
D.
unit costs
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Total costs incur in a production process, is divided by total number of output units to calculate the unit costs. A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service.