Under throughput costing, the cost of a unit typically includes:
A)selling costs.
B)fixed manufacturing overhead.
C)the direct costs incurred whenever a unit is manufactured.
D)administrative costs.
E)depreciation on the building to house head office.

Question

Quizplus · Accepted Answer

Throughput costing only includes direct costs incurred whenever a unit is manufactured, such as direct materials and direct labor. Selling costs, administrative costs, and depreciation on the building to house head office are not included in the unit cost calculation. Fixed manufacturing overhead may be included in the calculation depending on the specific approach used for throughput costing.

Under Throughput Costing, the Cost of a Unit Typically Includes