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How is the total cost per ton calculated in the provided example?
  • a)
    By dividing total expenses by the total output
  • b)
    By adding all expenses and dividing by the total output
  • c)
    By subtracting total expenses from the total output
  • d)
    By dividing total output by the total expenses
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
How is the total cost per ton calculated in the provided example?a)By ...
The total cost per ton is calculated by adding all expenses (including prime cost, works cost, office cost, selling and distribution overheads) and then dividing by the total output (in this case, 10,000 tons). This gives the cost per ton for the period.
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How is the total cost per ton calculated in the provided example?a)By dividing total expenses by the total outputb)By adding all expenses and dividing by the total outputc)By subtracting total expenses from the total outputd)By dividing total output by the total expensesCorrect answer is option 'B'. Can you explain this answer?
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