Chapter 1: Managerial accounting and cost concepts Copr.Goed…
Chapter 1: Managerial accounting and cost concepts Copr.Goedl Assume that actual production is 9,300 units. What is the total cost of goods sold? Study tip: Expressing fixed expenses as variable expenses is one of the most challenging concepts from chapter 1. The average per unit costs are based on a production level of 9,000 units. Fixed costs are fixed in total and the per unit amount changes depending on the quantity. To solve this convert fixed product costs to the total amount based on the production level of 9,000. Then use the variable costs and total fixed costs to compute the total for a production level of 9,300.
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