Table 75
​ -Refer to Table 7

question 95

Multiple Choice

Table 7.5
​
$$\begin{array} { | c | c | c | } \hline \text { Labor } & \text { Total Froduct } & \text { Marginal Product } \\\hline 1 & 2 & 2 \\\hline 2 & 6 & \mathrm {~A} \\\hline 3 & \mathrm {~B} & 6 \\\hline 4 & 16 & 4 \\\hline 5 & 18 & \mathrm { C } \\\hline 6 & \mathrm { D } & 0 \\\hline\end{array}$$
-Refer to Table 7.5,which shows labor,total product,and marginal product produced by a firm.At which points do negative marginal returns set in?

• A)before the first unit of labor
• B)between the first and second units of labor
• C)between the second and third units of labor
• D)between the third and fourth units of labor
• E)after the sixth unit of labor

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Definitions:

Overhead

General, ongoing costs to operate a business that aren’t directly tied to producing a product or service, such as rent, utilities, and insurance.

Activity-Based Costing

A financial method which identifies organizational activities and assigns each activity's costs to products and services based on the actual amount they consume.

Activity Cost Pools

Collections of overhead costs assigned to specific activities, used in activity-based costing to allocate costs more accurately.

Activity Rates

Rates used in activity-based costing to allocate costs to products or services based on the activities they require.