Question

Output costing helps in arriving at the final .............. for marketers.

• A. Output
• B. Cost
• C. Price
• D. Estimate

Hint:

Unit costing → Cost per unit → Selling price = Cost + Profit.

Answer 1

The Correct Option is C

Output costing, also known as single or unit costing, is used for industries that produce identical products in bulk, like bricks, bottles, or paper.
Under this system, the total production cost is calculated for a specific period and then divided by the total units produced to find the cost per unit.
Marketers then use this cost per unit as the base to determine the selling price by adding a suitable profit margin.
Setting the right price is crucial because it must cover costs, generate profit, and remain competitive in the market.
Therefore, output costing ultimately helps marketers decide the final price of the product.