Marginal Product Equals

question 219

Multiple Choice

Marginal product equals

• A) the total product produced by a certain amount of labor.
• B) the change in total product that results from a one-unit increase in the quantity of labor employed.
• C) total product divided by the quantity of labor.
• D) the amount of labor needed to produce an increase in production.
• E) total product minus the quantity of labor.

---

Definitions:

Absorption Costing

An accounting method that includes all direct and indirect manufacturing costs in the cost of a product, including overhead.

Cost-plus Pricing

A pricing method where a fixed percentage is added to the total cost of producing a product or service to determine its selling price.

Return on Investment

A measure of the profitability and efficiency of an investment, calculated as the return (or gain) from an investment relative to its cost.

Markup

An amount added to the cost price of goods to cover overhead and profit.