The Change in Output That Results from Changing a Variable

question 11

Multiple Choice

The change in output that results from changing a variable input by one unit, holding all other inputs fixed, is called the marginal __________ product of the variable input.

• A)physical
• B)value
• C)average
• D)explicit

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products based on the activities it requires for production, aiming for more accurate product costing.

Overhead Assigned

The allocation of indirect costs to specific products or cost objects.

Traditional Costing

A costing methodology that allocates manufacturing overhead costs to products based on a predetermined rate, often volume-based such as labor hours or machine hours.

Direct Labor-Hours

An evaluation of the cumulative hours spent directly in the manufacturing of products.