Marginal Cost Is Calculated for a Particular Increase in Output

question 102

Multiple Choice

Marginal cost is calculated for a particular increase in output by

• A)multiplying the total cost by the change in output.
• B)multiplying the change in total cost by the change in output.
• C)dividing the total cost by the change in output.
• D)dividing the change in total cost by the change in output.

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Definitions:

Long Period

A term referring to an extended duration of time, often relating to financial or strategic planning horizons.

Comparability

An accounting principle that allows stakeholders to compare financial information across different time periods effectively.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting that is adopted by most countries.

ASPE

Accounting Standards for Private Enterprises, which are the accounting standards used by private companies in Canada.