a cost caused by the production or acquisition
of a single unit of product or the delivery of a single
unit of service
a cost caused by the production or acquisitionof a single unit of product or the delivery of a singleunit of service
false
Variable cost per unit remains same with level of production and no change in change in level of production.
It remains the same per unit regardless of activity level
A decrease in fixed cost per unit
a cost caused by the production or acquisitionof a single unit of product or the delivery of a singleunit of service
One example of non unit level overhead cost is the cost of business consulting. Another example is paying the CEO. These costs can't be linked to a direct product.
false
Variable cost per unit remains same with level of production and no change in change in level of production.
It remains the same per unit regardless of activity level
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
A decrease in fixed cost per unit
True, because when fixed costs are viewed on a per unit basis and as activity level rises we will see a decrease in the average cost. Conversely, fix costs increases per unit as the activity level falls. An example would be the $10,000 rental cost on a machine that assembles 5,000 units which has an average cost of $2/ per unit. Conversely, if the machine only produces 2500 units the average cost will be $4/ per unit.
Sales price is the price at which unit of product is sold while variable cost is that cost of unit which in manfuacturing process varies with change in level of production directly.
Unit Cost is the cost incurred to produce one unit of production volume while cost unit is that department in unit business structure environment where business departments are divided into units according to their work. So cost unit is that unit due to which company has to bear cost and it is same like cost centers it is same like that selling department is called revenue unit. So any department which cost is included in production cost is called cost unit.
ABC system has able to assign overhead cost to unit level, batch level, product level with cost driver '' cuse and effect ''
Direct cost per unit is that cost of unit incurred to manufacture one unit of product.Formula for direct cost per unit = total direct cost / total number of units.