The Cost of a One-Unit Increase in an Activity

question 29

Multiple Choice

The cost of a one-unit increase in an activity

• A)is called the unit cost.
• B)is called the marginal benefit/cost.
• C)is called the total one-unit cost.
• D)is called the marginal cost.
• E)decreases as more of the activity is done.

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Definitions:

Real Accounts

Accounts related to assets, liabilities, and equity that are not closed at the end of the accounting period, as opposed to nominal accounts.

Accumulated

The total amount collected or gathered over a period, often referring to earnings, benefits, or other financial measures.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Capital Account

An account on a national or international level showing the net change in asset ownership for a country, or on a company level, it represents the funds contributed by owners plus retained earnings.