Microsoft's Marginal Cost of the 100th Copy of Microsoft Windows

question 42

Multiple Choice

Microsoft's marginal cost of the 100th copy of Microsoft Windows 10 is

• A)equal to the marginal benefit from the 100th copy of Windows 10.
• B)the maximum amount that someone is willing to pay for the 100th copy of Windows 10.
• C)the opportunity cost of producing the 100th copy of Windows 10.
• D)greater than the marginal benefit from the 100th copy of Windows 10.
• E)the maximum amount that someone is willing to pay Microsoft to obtain the code that supports Windows 10.

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Definitions:

Total Period Cost

The entire sum of expenses incurred by a business during a specific period, including both fixed and variable costs.

Absorption Costing

An accounting method that includes all manufacturing costs (direct labor, materials, and overhead) in the cost of a product.

Variable Costing

A bookkeeping approach that incorporates just the variable costs of production such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.