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

Question

Quizplus · Accepted Answer

To calculate unit cost, an accountant needs to know the output (total units produced) for a period and the manufacturing costs for the department for that period, which would include materials cost and overhead. The concept of conversion costs and prime costs are relevant for calculating cost of goods sold, but not necessarily for calculating unit cost. Total units produced by all departments may be relevant for calculating overall company-wide costs, but not necessarily for calculating unit cost for a specific product or department.

What Does an Accountant Need to Know to Calculate Unit