Product unit cost is computed by dividing the cost of goods sold by the number of units sold.

Name: Product unit cost is computed by dividing the cost of goods sold by the number of units sold.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Product unit cost is computed by dividing the total cost of the product (including manufacturing, labor, marketing, and overhead expenses) by the number of units produced, not by the number of units sold. The cost of goods sold is only a portion of the total cost of producing a product.

Product Unit Cost Is Computed by Dividing the Cost of Goods