Marginal Cost Is Defined as

question 40

Multiple Choice

Marginal cost is defined as

• A) the additional cost attributable to the last unit produced.
• B) the change in fixed costs associated with the production of one more unit of output.
• C) the difference between total revenue and total cost.
• D) price times quantity.

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Definitions:

Finished Goods Inventory

The total value of all completed products that are ready for sale but have not been sold yet, stored by a manufacturing company.

Cost Of Goods Sold

The expenses directly related to the manufacture of the products a company sells.

Product Costs

The total costs incurred to manufacture a product or provide a service, including direct materials, labor, and overhead expenses.

Inventories

Items of merchandise, raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the ordinary course of business.