Per-unit costs:
A) Are relevant only when a company is engaged in manufacturing activities.
B) Are determined in job order costing systems but cannot be computed when a process costing system is in use.
C) Are relevant in manufacturing, merchandising, and service industries, regardless of the type of cost accounting system in use.
D) Are determined by relating manufacturing costs to the number of units sold.

Question

Quizplus · Accepted Answer

Per-unit costs are relevant in all industries regardless of the type of cost accounting system in use. It is determined by dividing the total cost by the number of units produced, sold or delivered. It is used as a decision-making tool by managers to determine the profitability of a product or service and to set pricing strategies.

Per-Unit Costs