Marginal Cost Is the ________ Associated with a Particular Increase

question 58

Multiple Choice

Marginal cost is the ________ associated with a particular increase in an activity.

• A)total cost
• B)additional cost
• C)opportunity cost
• D)forgone cost

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Definitions:

Required Rate Of Return

The minimum expected yield by investors for providing capital to a company, influenced by risk and market conditions.

Net Operating Income

The profit generated from a company's regular business operations, excluding revenues and expenses from non-operating activities.

Contribution Margin Ratio

The proportion of sales revenue that is not consumed by variable costs and therefore contributes to covering fixed costs.

Fixed Expenses

Costs that remain constant for a period of time regardless of production levels or business activity.