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:

Time Period Assumption

An accounting principle that allows an organization to divide its economic activities into specific time periods such as months, quarters, or years for reporting purposes.

Adjusting Entries

Closing entries in accounting at the end of a period to ensure income and expenses are attributed to the period in which they took place.

Business Events

Occurrences that affect the financial position of a company and can be measured reliably in financial terms.

Recorded

The process of recording business financial transactions into the accounting books.