Marginal Product Is

question 473

Multiple Choice

Marginal product is

• A) the increase in output that results from a one-unit increase in the quantity of labor employed with all other inputs remaining the same.
• B) total amount of output produced.
• C) total amount of output produced divided by the quantity of labor employed.
• D) total amount of output produced divided by price of the output.

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Definitions:

Variable Overhead

Costs that vary with the level of production output, such as utilities for manufacturing equipment, which are not fixed.

Standard Cost

An estimated or pre-determined cost of manufacturing a product or performing a service, used for budgeting and performance evaluation.

Variable Manufacturing Overhead

Indirect production costs that fluctuate with the level of production output, such as utilities for the manufacturing plant.

Direct Labor-Hours

The total number of hours worked by employees directly involved in manufacturing goods or providing services.