What is cost per unit
[DOC File]CHAPTER 7
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The total relevant cost per unit of making the part is composed of the variable production cost per unit ($11) plus the fixed cost per unit. Since the total cost must be equal to $15, then the fixed cost per unit must be $4 ($15 − $11). The fixed cost per unit is calculated as: Fixed cost per unit = Total relevant fixed costs ÷ Units to be ...
[DOC File]CHAPTER 1: INTRODUCTION
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3. A firm has a fixed production cost of $5,000 and a constant marginal cost of production of $500 per unit produced. What is the firm’s total cost function? Average cost? The variable cost of producing an additional unit, marginal cost, is constant at $500, so , and Fixed cost is $5,000 and average fixed cost is .
[DOC File]gar003, Chapter 3 Systems Design: Job-Order Costing
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Fixed cost per unit (based on 10,000 annual capacity) 24. Nita Corp.’s Department II is introducing a new product that will use component C. An outside supplier has quoted Department II a price of P96 per unit. This represents the usual P100 price less a quantity discount due to the large number of Department II’s requirements.
[DOC File]COST SHEET - FORMAT
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b. selling price is lower than variable cost per unit. c. selling price is less than average total cost per unit. d. fixed cost per unit is greater than variable cost per unit. b 6. As volume increases, average cost per unit. a. increases. b. decreases. c. remains constant. d. increases in proportion to the change in volume. d 7.
Cost Per Unit (Definition, Examples) | How to Calculate?
Feb 02, 2008 · a) Calculate cost per unit by assuming there is no abnormal loss / gain. b) Cost per unit arrived above should be applied for valuation of both abnormal . Loss/gain units and output of the process. c) Separate a/c for both abnormal loss/gain is to be prepared. JOINT PRODUCT AND BY PRODUCT COSTING. Methods of apportioning joint cost over joint ...
[DOC File]Relevant Costs for Decision Making
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A) The variable cost is $0.70 per unit of activity. B) The fixed cost is $2,050. C) The variable cost is $2.50 per unit of activity. D) The fixed cost is $1,800. Level: Easy LO: 3 Ans: D 81. The following data relate to two levels of activity at an out-patient clinic in a hospital:
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