Marginal Revenue Is Defined as

question 79

Multiple Choice

Marginal revenue is defined as

• A)the difference between costs and revenues.
• B)the change in total revenue caused by selling one additional unit of output.
• C)price times quantity.
• D)total revenue divided by the level of output.
• E)total revenue minus the level of output.

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Definitions:

Prime Costs

The combined costs of direct material and direct labor required to produce a good.

Conversion Costs

Costs incurred to convert raw materials into finished goods, including direct labor and manufacturing overhead.

Prime Costs

The combination of direct materials and direct labor costs that are directly attributable to the production of goods.

Nonmanufacturing Cost

Expenses not directly involved in the production of goods, such as selling, administration, and other overhead costs.