The approach to deriving full costs in an operation where only identical products are produced is:
A)(total cost times percentage allocated to each unit)divided by total units.
B)total cost divided by total units.
C)(total units times percentage allocated to each unit)times total cost.
D)total units times total cost.

Question

Quizplus · Accepted Answer

When only identical products are produced, the total cost can be divided equally or proportionately among the total units, resulting in the cost per unit. Therefore, the best approach to deriving full costs is to divide the total cost by the total units produced, which is the method used in choice B.

The Approach to Deriving Full Costs in an Operation Where