The Following Accompanying Table Shows the Relationship Between the Speed of a Computer's

question 129

Multiple Choice

The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation) , and only the CPU speeds listed below are available for purchase.  
$\begin{array}{|c|c|c|c|c}\hline \text { CPU GHz } & \text { Total Benefit } & \text { Marginal Benefit } & \text { Total Cost } & \text { Marginal Costs } \\\hline 2.0 & \$ 1,000 & & \$ 900 & \\\hline 2.5 & \$ 1,400 & & & \$ 100 \\\hline 3.0 & & \$ 300 & \$ 1,200 \\\hline 3.5 & \$ 1,900 & & \$ 1,500 & \\\hline 4.0 & \$ 2,000 & & & \$ 400 \\\hline\end{array}$  
The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:

• A)$1,400.
• B)$1,000.
• C)$400.
• D)$100.

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Definitions:

Measuring Ingredients

Measuring Ingredients involves quantitatively determining the proportions of various components that go into a product, critical in both cooking and manufacturing.

Batch Level Activities

These activities involve costs incurred for every batch produced, regardless of the volume of units in the batch.

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Activity-Based Product Costing

A costing method that assigns costs to products based on the activities they require, focusing on the relationship between costs, activities, and products.