Economists Use the Term "Marginal" to Describe Costs and Benefits

question 5

Multiple Choice

Economists use the term "marginal" to describe costs and benefits

• A) that are minimal and hardly worth noting.
• B) that are incremental and thus relevant to decision making.
• C) that are noteworthy but not the most important.
• D) whose importance can be minimized through hard work.
• E) none of the above.

Understand the distinction between different types of numbering in business reports.

Comprehend tests for making reasonable inferences from business report data.

Differentiate between topic and talking headings in reports.

Identify ways to minimize errors in data gathering for business reports.

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Definitions:

Job Cost Sheet

A document or record that tracks all the costs associated with a particular job or project, including materials, labor, and overhead expenses.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or job orders, calculated before the period begins.

Machine-hours

A measure of production output based on the number of hours machines are operated.

Job-order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batches of products, often used when products are distinct or made to order.