Deducting the Disposal Value from the Costs of the Spoiled

question 116

Multiple Choice

Deducting the disposal value from the costs of the spoiled goods accumulated to the point of inspection equals

• A)the net cost of discarded goods.
• B)the net cost of reworked goods.
• C)the net cost of spoilage.
• D)the net cost of scrap.
• E)the net cost of disposals.

---

Definitions:

Average Product

The output produced per unit of input, calculated by dividing total production by the number of input units.

Marginal Product

The additional output resulting from using one more unit of a particular input while holding all other inputs constant.

Accounting Profits

The difference between total revenue and explicit costs, representing the net income shown on a company's financial statements.