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:

Activity-Based Costing

A system of costing that divides overhead and indirect costs among products and services based on the activities they perform.

Matching Capacity

The process of adjusting the production capability of a company to meet the actual demand for its products or services.

Activity-Based Costing

An approach to cost accounting that allocates overhead and indirect costs to products and services in relation to the activities required.

Resource Consumption

The amount of resources used by a company or process, which could include materials, energy, or labor.