Marginal Revenue Product Is

question 163

Multiple Choice

Marginal revenue product is

• A)the additional cost of employing a factor.
• B)the additional revenue generated by employing an additional factor unit.
• C)marginal revenue multiplied by price of the factor unit.
• D)price of the good that is sold multiplied by unit cost.
• E)none of the above

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Definitions:

First-in

Refers to the 'First-In, First-Out' (FIFO) inventory valuation method where the first items acquired are the first ones sold.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units.

Equivalent Units

An approach utilized in process costing to translate partially finished units into an equivalent number of completely finished units.

First-in

A principle often related to inventory valuation where the earliest goods purchased or produced are the first ones to be sold or used.