The Value of the Marginal Product of Any Input Is

question 68

Multiple Choice

The value of the marginal product of any input is equal to the marginal product of that input multiplied by the:

• A)marginal cost of the output
• B)change in total profit
• C)market price of the output
• D)additional revenue

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Definitions:

Budgeted Production

represents the amount of production planned for a future period as part of the budgeting process.

Standard Cost System

An accounting system that uses standard costs for cost control and decision making.

Materials Price Variance

The difference between the actual cost of materials and the expected cost at standard prices.

Direct Materials

The raw materials that are directly traceable to the production of a specific good or service.