A Milton unit-cost report moved from $62.40 per unit last month to $58.10 this month. What unit-cost trend should be logged?
Correct Answer
B) $-4.30 per unit
Unit-cost trend equals current unit cost minus prior unit cost.
Why This Is the Correct Answer
Unit-cost trend equals current unit cost minus prior unit cost.
Why the Other Options Are Wrong
Option A: $120.50 per unit
$120.50 per unit is above the supported result for unit-cost trend; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Option C: $4.30 per unit
$4.30 per unit is not aligned with the supported result for unit-cost trend; it has the wrong label or classification even if the number looks close.
Option D: $0.93 per unit
$0.93 per unit is below the supported result for unit-cost trend; it likely omits allowance, conversion, coverage, or final round-up.
Memory Technique
Cost Engineer takeoff: count the condition before counting the package.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Unit-cost reports and cost trend analysis; verify the trade cost, production, or field-control rule before answering.
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