The Marginal Cost of Labor Is Defined as the

question 110

Multiple Choice

The marginal cost of labor is defined as the

• A) total cost of producing a certain amount of output.
• B) total cost of hiring an additional worker.
• C) additional cost of hiring an additional worker.
• D) additional fixed cost of producing an additional unit of output.

---

Definitions:

Manufacturing Overheads

Expenses related to the manufacturing process that are not directly tied to the production of individual units, such as factory rent and machinery maintenance.

Activity-based System

An accounting method that assigns costs to products or services based on the activities that go into producing them, aiming for more accurate costing by tracing resources consumed by activities.

Activity Based Costing

An accounting method that allocates costs to products or services based on the activities that go into producing them, aiming to provide more accurate product cost information.

Product Offering

The complete set of goods and/or services that a company makes available to consumers.