Marginal Cost Is the Change in Total Cost Resulting from a One-Unit

question 109

True/False

Marginal cost is the change in total cost resulting from a one-unit change in output.

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Definitions:

Withdrawal Kanban

A signaling system within the Just-in-Time (JIT) manufacturing process that indicates when to withdraw parts or materials from the supply chain to the production line.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific activities, providing more accurate product or service costing.

Production Stage

A specific phase in the manufacturing process where raw materials are transformed into finished goods.

Cost Driver

A factor that creates or drives the cost of activities and services, used in activity-based costing to allocate costs accurately.