FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What is the unit product cost under variable costing? |
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Variable Cost :— It is the cost that changes with change in units. It is constant in per unit for all flexible units.
Fixed Cost :— It is the cost that does not change with change in units. It is constant in total for all flexible units.
Unit Product Cost :— It is the total manufacturing cost for one unit. It is the sum of direct material, direct labour and variable manufacturing overhead. Fixed manufacturing cost is not part of cost of production under variable costing method.
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