The Extra Cost Associated with Producing or Consuming the Next

question 48

Multiple Choice

The extra cost associated with producing or consuming the next unit is called the:

• A) variable cost.
• B) marginal cost.
• C) utility cost.
• D) sunk cost.

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Definitions:

Catalog Price

The price listed in a catalog, not accounting for any discounts or promotions.

Credit Terms

Credit Terms are the payment terms and conditions established by a seller, including the period that has to pass before an invoice is considered overdue.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.