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Each Unit of Product Requires 16 Pounds of Material

question 49

Multiple Choice

Each unit of product requires 16 pounds of material.Due to scrap and rework, each unit has been averaging 18 pounds of material.The material costs $4 per pound.
-The non-value-added costs are

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Definitions:

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a given period.

ATC

Average Total Cost, the sum of all production costs divided by the quantity of output produced, reflecting the average cost per unit of output.

AVC

Average Variable Cost is the total variable cost per unit of output, which is calculated by dividing total variable costs by the quantity of output.

MC

Marginal Cost, the increase or decrease in the total cost of a production run for making one additional unit of an item.

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