The _______ Is the Amount by Which an Additional Unit

question 65

Multiple Choice

The _______ is the amount by which an additional unit of activity increases its cost.

• A) marginal cost
• B) average cost
• C) average profit
• D) marginal benefit

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Definitions:

Accounting Period

The time span for which financial statements are prepared, typically a year, a quarter, or a month.

Actual Manufacturing Overhead

The real expenses incurred during the manufacturing process, excluding direct labor and raw material costs, such as utilities, depreciation, and maintenance.

Incurred

Refers to costs or expenses that have been realized or consumed in the course of business operations.

Product Costs

The direct and indirect costs incurred to produce a product, including materials, labor, and overhead.