In Applying the Cost-Benefit Principle,one Should Calculate the

question 79

Multiple Choice

In applying the cost-benefit principle,one should calculate the

• A) total cost and total benefit,and choose that quantity of an activity where they are equal.
• B) average cost and average benefit,and choose that quantity of an activity where the average benefit exceeds the average cost by the greatest amount.
• C) total cost and total benefit,and choose that quantity of an activity where the total cost exceeds the total benefit by the greatest amount.
• D) marginal cost and marginal benefit,and choose that quantity of an activity where the marginal benefit at least equals the marginal cost.
• E) marginal cost,total cost,marginal benefit,and marginal cost,and choose that quantity of an activity where the marginal cost equals the total cost and the marginal benefit equals the total benefit.

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Definitions:

Impact on Expenses

The effect that a specific action or decision has on a company's total expenses.

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual amount of time they consume resources.

Customer Support Department

A division within a company responsible for helping customers with their queries, complaints, and other service-related issues.

Resolving Issues

The process of identifying, assessing, and solving problems that may arise in a business, project, or process.