Marginal Benefit Refers to the Additional Benefit That Your Activity

question 63

True/False

Marginal benefit refers to the additional benefit that your activity provides to you.

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Definitions:

Period Costs

Costs that are not directly related to the manufacturing process and are charged as expenses in the period they arise.

Units Sold

The total quantity of a company's product that was sold during a specified period.

Prime Cost

The total of direct materials plus direct labor expenses linked to the manufacturing of products.

Variable Cost

Costs that vary in direct proportion to changes in levels of production or sales, such as materials and labor directly involved in a product's manufacturing.