Hi. I saw your other post. I was sort of letting this one go cause cost accounting is a specialized area and I'm fine with some of it, but not all of it. I know that the cost per unit part they've given you is variable, so that just literally needs multiplied out by how many are being sold.
But total costs are going to include the fixed. I'm not quite sure if that's just being pro-rated based on units, or on the salesperson's time or what. I didn't answer because of that issue. I could be making it difficult, but since cost accounting isn't my specialty, I hate to get into something when I know there might be a different way of doing it. But somehow you do have to get those fixed costs split up.
Getting something PER something is always a division in that order. It can be applied to anything. It's like paying $1 for a dozen eggs. If you wanted to know cost PER egg, you divide cost by eggs: $1/12. Same thing here or anything else like this.
|