Marginal Cost Is

question 14

Multiple Choice

Marginal cost is

• A)the change in total cost that results from hiring one more unit of labor.
• B)total cost divided by total output.
• C)the change in total variable cost that results from hiring one more unit of capital.
• D)the change in total cost that results from hiring one more unit of capital.
• E)the change in total cost that results from increasing output by one unit.

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Definitions:

Accrued Wages Expense

Costs incurred by a company for wages that have been earned by employees but have not yet been paid.

Annuity

A series of periodic cash receipts or payments that are equal in amount each interest period.

Consecutive Payments

Regular payments made in a series one after another, often referring to loan repayments or lease payments.

Accrued Liability

A liability that has been incurred, often for expenses, that has not yet been paid or recorded at the end of the accounting period.