When an Economist Says That an Apple Gives a Quantifiable

question 6

Multiple Choice

When an economist says that an apple gives a quantifiable level of utility, this is:

• A) cardinal utility
• B) ordinal utility
• C) total utility
• D) marginal utility

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Definitions:

Direct Material

Raw materials that are directly traceable to the manufacturing of a specific product and are an essential component of its production.

Process Costing

An accounting methodology used for homogenous products, where costs are assigned to production processes or departments and averaged over the units produced.

Cost per Unit

The cost to produce a single unit of product, calculated by dividing the total production cost by the number of units produced.

Total Manufacturing Cost

The aggregate expenses involved in making a product, including raw materials, direct labor, and overhead costs.