Profit Per Unit of Output Is

question 12

Multiple Choice

Profit per unit of output is

• A)price minus average total cost
• B)marginal revenue minus marginal cost
• C)average total cost minus average variable cost
• D)total revenue minus total cost
• E)demand minus average variable cost

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Definitions:

Activity Method

A depreciation method where the asset’s expense is based on its usage or activity level, rather than the passage of time.

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Declining-Balance Method

A method of calculating depreciation that results in larger depreciation charges in the early years of an asset's life and smaller charges later on.

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.