What does the accountant need to know to calculate unit cost?
A) materials cost plus overhead
B) the output for a period and the manufacturing costs for the department for that period
C) prime costs
D) total units produced by all departments

Question

Quizplus · Accepted Answer

To calculate unit cost, the accountant needs to know the output for a particular period and the manufacturing cost for that department for that period. This will help in arriving at the unit cost of the product. The materials cost plus overhead and prime costs also factor into the unit cost calculation, but they alone are not enough to arrive at the final unit cost. Total units produced by all departments doesn't provide information on the costs associated with producing a specific unit, so it isn't helpful in calculating unit cost.

What Does the Accountant Need to Know to Calculate Unit