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The Amount by Which an Additional Unit of a Good

question 237

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The amount by which an additional unit of a good or service changes a consumer's total satisfaction, all other things unchanged, is _____ utility.


Definitions:

Variable Costing

An accounting technique that involves only variable costs like direct materials, direct labor, and variable manufacturing overhead in the costing of products.

Absorption Costing

A method of accounting that incorporates all costs related to manufacturing—including direct materials, direct labor, and all manufacturing overheads, whether fixed or variable—into the product's cost.

Carrying Value

The book value of an asset on a balance sheet, representing its acquisition cost minus depreciation or amortization.

Ending Inventory

The value or quantity of stock and materials a company has at the end of a financial period.

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