The Cost of Producing an Additional Unit of Output Is

question 352

Multiple Choice

The cost of producing an additional unit of output is the firm's

• A)marginal cost.
• B)productivity offset.
• C)variable cost.
• D)average variable cost.

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Definitions:

High-low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with changes in the activity level but not proportionately.

High-low Method

A technique used in managerial accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

High-low Method

A technique used in cost accounting to determine the variable and fixed components of a cost by analyzing the highest and lowest activity levels.