Total Utility

question 161

Multiple Choice

Total utility

• A)cannot decrease as a person consumes more and more of a good.
• B)has a constant rate of increase as a person consumes more and more of a good.
• C)is equal to the sum of the marginal utilities of all units consumed.
• D)is negative when marginal utility is declining.

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Definitions:

Standard Costs

Standard costs are the estimated costs associated with the production of goods or services, used for budgeting and performance evaluation.

Actual Costs

Actual costs are the expenses that have been incurred or the true amount of money spent on a project, product, or activity.

Fixed Overhead Budget Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead incurred.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, providing predictability to a business's expenses.