The Cost of a One-Unit Increase in an Activity

question 96

Multiple Choice

The cost of a one-unit increase in an activity

• A) is called the total one-unit cost.
• B) is called the marginal cost.
• C) decreases as more of the activity is done.
• D) is called the marginal benefit/cost.
• E) is called the unit cost.

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Definitions:

Converted Into Cash

The process of liquidating assets or investments to generate cash flow or liquidity.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, considered as current assets on a balance sheet.

Current Asset

Current Assets are assets expected to be converted into cash, sold, or consumed during a company's next operating cycle or within a year, including cash, inventory, and accounts receivable.

Current Asset

Assets likely to be converted into cash, sold, or consumed within a year or normal operating cycle, such as cash, inventory, and accounts receivable.