The Basis Used in Computing Equivalent Unit Cost Under Process

question 88

True/False

The basis used in computing equivalent unit cost under process costing system is made up of certain specific jobs worked on during the fiscal year.

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Definitions:

Marginal Cost

The additional cost incurred when producing one more unit of a good or service.

Economic Profit

The total revenue of a firm minus its explicit and implicit costs, representing the surplus generated beyond the opportunity cost.

Marginal Revenue

The increase in earnings from the sale of one additional unit of a good or service.

Competitive Price-Taker

An enterprise that is unable to dictate the market price and thus must conform to the current market price for its offerings.