What does an 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)conversion costs and prime costs
D)total units produced by all departments

Question

Quizplus · Accepted Answer

To calculate unit cost, an accountant needs to know both the output (total units produced) for a period and the manufacturing costs for the department for that period. This would include direct materials, direct labor, and manufacturing overhead costs. From this information, unit cost can be calculated by dividing the total manufacturing costs by the total units produced.

What Does an Accountant Need to Know to Calculate Unit