The Equimarginal Rule Says That a Person Will Maximize Utility

question 19

True/False

The equimarginal rule says that a person will maximize utility by choosing the good for which the marginal utility is the greatest.

---

Definitions:

Employee Time Ticket

A record that tracks the amount of time an employee spends on various tasks, used for costing, payroll, or billing purposes.

Overhead Rate

A measure used to allocate manufacturing overhead costs to units of product based on a predetermined base.

Manufacturing Overhead

The indirect costs related to manufacturing that are not directly tied to a specific product, such as factory rent, maintenance, and utilities.

Job Cost Accuracy

The precision with which a company estimates and tracks the costs associated with specific jobs or projects.