What is the term for the cost obtained by dividing the overall manufacturing expenses by the number of units produced?

Fundamentals of Accounting MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Fundamentals of Accountingaccounting-mcqs › cost-accounting-mcqs › fundamentals-of-accounting
Published
10 May 2023
Last updated
28 May 2026

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Explanation

The cost per unit is calculated by dividing the total manufacturing cost by the total number of units produced. This metric helps in understanding the expense incurred for producing one unit. Other options like aggregate cost or total overhead cost refer to different cost concepts.

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