Direct Costs Are Allocated to the Cost Object Using a Cost-Allocation

question 85

True/False

Direct costs are allocated to the cost object using a cost-allocation method.

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Definitions:

Marginal Returns

The change in output resulting from a one-unit increase in a particular input, while holding other inputs constant.

Marginal Cost

The rise in overall expenses associated with the production of an extra unit of a product or service.

Average Total Cost

The total cost of production divided by the number of units produced, giving a per unit cost of production.

Marginal Cost

The expense associated with creating an extra unit of a product or service.