The correct answer is:
Dividing total cost by related quantity
This method calculates the average cost per unit by taking the total cost and dividing it by the number of units produced.
How is the average cost (per unit) calculated?
Multiple choice question.
Dividing total cost by related quantity
Adding total fixed cost and total variable cost
Dividing variable cost by the related quantity
Subtracting total variable cost from total cost
1 answer