Which Cost Always Increases as Output Increases

question 212

Multiple Choice

Which cost always increases as output increases?

• A) total cost
• B) marginal cost
• C) average total cost
• D) average fixed cost

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Definitions:

Inventory Carrying Costs

The total cost associated with holding inventory, including storage, insurance, depreciation, and opportunity costs.

Standard Deviation

An index indicating the degree of spread or diversity among values in a dataset.

Acquisition Lead Time

The total time taken from recognising a need for a product or service to when it is fully operational or delivered.

Inventory Handling Cost

The expenses associated with managing and maintaining inventory, including storage, labor, material handling, and related overhead.