2 years ago

Sales volume plays a large role in determining per unit costs in the cost-plus pricing approach.

1 answer:

5 0

That statement is true.
In the cost-plus pricing approach, you add up all the cost needed for the product (material, direct labor, and overhead) and then calculate it with mark-up percentage in order to determine the price that you should set for your product.
Since cost per unit is determined by total products/total cost, sales volume played a large role in determining per unit costs

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Nadell Corporation reported the following data for the month of AprilInventory Beginning Ending Raw Materials $30,000 $32,000 Wo

jeyben [28]

Answer:

COGS= $181,000

Explanation:

Giving the following information:

Beginning Finished Goods= $39,000

Ending Finished Goods= $53,000

Cost of goods manufactured= 234,000 - 39,000= $195,000

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory