Marginal Cost Is Best Defined as

question 169

Multiple Choice

Marginal cost is best defined as

• A) a cost that does not vary with the rate of output.
• B) the difference between fixed and variable cost at any level of output.
• C) the amount added to total cost when one more unit of output is produced.
• D) the difference between price and average total cost at the profit-maximizing level of output.

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Definitions:

Standard Direct Labor Cost

The predefined cost associated with the labor required to produce a good or service, under normal circumstances.

Payroll Taxes

Levies placed on both employers and employees, often determined as a portion of the wages that businesses provide to their workforce.

Hourly Wage Rate

The amount of money paid for each hour of work, commonly used to compensate hourly employees.

Labor Variances

Differences between the actual labor costs incurred and the standard labor costs expected for the work performed.