Refer to the Following Table to Answer the Following Questions

question 168

Multiple Choice

Refer to the following table to answer the following questions:

-The marginal utility of the fifth unit is

• A) -15 utils.
• B) 75 utils.
• C) 90 utils.
• D) 20 utils.
• E) 0 utils.

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to allocate expenses to cost objects based on their use of activities.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more precise allocation of indirect costs.

Machine-Hours

A unit of measure representing the cumulative number of hours a machine is operated within a specific time frame.

Activity Rate

A measure used to assign costs to cost objects, based on the activities that drive costs in an activity-based costing system.