The Following Are Joint Costs in the Lumber Industry

question 63

Multiple Choice

The following are joint costs in the lumber industry:

• A) Cutting costs of logs
• B) Cost of shipping a load of lumber to a specific customer
• C) Costs incurred to turn sawdust and wood chips into chipboard
• D) Wages of the person who sells the finished products to customers

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Definitions:

Marginal Cost

The financial outlay involved in producing a supplementary unit of a good or service.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a primary energy source.

Industry Output

The total production of goods and services produced by a specific sector of the economy over a given period.

Marginal Cost

The cost incurred from producing one additional unit of a good or service.