Match each following terms with their correct formula from the items listed below.
-(direct labour + manufacturing overhead)/units produced
A)Per-unit prime cost
B)Per-unit conversion cost
C)Per-unit cost of goods manufactured

Question

Quizplus · Accepted Answer

The formula given matches the definition of per-unit conversion cost, which includes the costs of both direct labor and manufacturing overhead. Per-unit prime cost only includes direct materials and direct labor, while per-unit cost of goods manufactured includes all manufacturing costs incurred during the period divided by the number of units produced.

Match Each Following Terms with Their Correct Formula from the Items