Question

Which costing method does Heathcoat Co. employ?

A) Job costing
B) Process costing
C) Activity-based costing
D) Variable costing

Answer 1

Costs measured on a per-unit basis include average cost, average variable cost, variable costs, and marginal cost; fixed costs are constant overall, not per unit. Production technology encompasses methods and advancements that enhance production efficiency.

Step-by-step explanation:

The costs that are measured on a per-unit basis typically include average cost, average variable cost, variable costs, and marginal cost. Fixed costs, however, are not measured on a per-unit basis because they remain constant regardless of the number of units produced. Instead, fixed costs are an overall total that does not change with production volume, though the fixed cost per unit would decrease as more units are produced.

Production technology refers to the methods, processes, equipment, and techniques used in the production of goods and services. It includes advancements that improve efficiency and the ability to produce more with the same amount of resources or produce the same quantity with fewer resources.