Final answer:
The projected manufacturing cost per unit of product excludes sales commission (option A) , which is considered a selling expense, not a manufacturing cost. Per-unit costing includes direct materials, direct labor, and variable manufacturing overhead. Production technology is the methods and processes transforming inputs into outputs.
Step-by-step explanation:
The projected manufacturing cost per unit of product sold does not include sales commission cost per unit. When calculating the costs on a per-unit basis in manufacturing, included costs typically are direct materials, direct labor, and variable manufacturing overhead, all of which vary with the level of production. Sales commissions, however, are generally considered a selling expense and not a manufacturing cost.
Costs that are measured on a per-unit basis include average cost, average variable cost, variable costs, and marginal cost. Average variable cost is calculated by dividing the variable costs—such as raw materials and variable labor—by the total output at each level of production. Production technology refers to the methods and processes used to transform inputs into finished goods and services.
Fixed costs, such as rent or salaries of permanent staff, remain constant regardless of the volume of goods produced and are not calculated on a per-unit basis. At zero production, fixed costs such as $160 would still be present, adding to total costs only when variable costs for materials and labor are incurred.