What Is the Term for the Change in Total Cost

question 97

Multiple Choice

What is the term for the change in total cost resulting from a one-unit increase in production?

• A) average fixed cost
• B) average opportunity cost
• C) average variable cost
• D) marginal cost

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Definitions:

Units

Basic quantities or measures used to express the amount, level, or extent of something.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributable to variations in the volume of production.

Supervisors

Individuals in an organization responsible for overseeing the work of employees and managing their performance.

Volume Variance

The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced.