The Additional Cost Resulting from a Small Increase in Some

question 98

Multiple Choice

The additional cost resulting from a small increase in some activity is called the:

• A) marginal cost.
• B) opportunity cost.
• C) marginal benefit.
• D) diminishing returns of the activity.

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Definitions:

Time Period Assumption

An accounting principle that states a business's activities can be divided into specific time periods, such as months, quarters, or years for reporting purposes.

Securities and Exchange Commission

An independent federal agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.

IASB

stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS).

Measurement (Cost) Principle

An accounting principle that states that accounting information should be based on actual cost.