The Amount by Which an Additional Unit of an Activity

question 65

Multiple Choice

The amount by which an additional unit of an activity increases total cost is:

• A)net benefit.
• B)marginal benefit.
• C)negative benefit.
• D)marginal cost.

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Definitions:

Financing Activities

Transactions involving raising capital or repaying funds to owners and creditors, reflected in a firm's cash flow.

Investing Activities

The acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Non-Current Assets

Assets intended to be held for more than one financial period, such as property, plant, and equipment, intangible assets, or long-term investments.

Financial Structure

Refers to the mix of debt and equity finance used by a company to finance its operations and grow.