Question

A unit cost is computed by ________.
a. dividing variable cost by the number of units produced.
b. dividing fixed cost by the number of units produced.
c. multiplying total cost by the number of units produced.
d. dividing total cost by the number of units produced.

Answer 1

Answer:

D

Explanation:

A unit cost is the cost of producing one unit of goods or services. It is calculated by dividing the total cost (sum of fixed and variable cost) by the total number of units produced