An Extraordinary Item Must Meet Which of the Following Criteria

question 111

Multiple Choice

An extraordinary item must meet which of the following criteria?

• A)Unusual in nature.
• B)Infrequent in occurrence.
• C)Unusual in nature and infrequent in occurrence.
• D)Unusual in nature or infrequent in occurrence.

---

Definitions:

Marginal Cost

The financial impact of manufacturing an additional unit of a product or service.

Profit Maximization

A company's objective to make the most amount of profit possible with its current resources and market conditions.

Competitive Firm

A company that operates in a market with many buyers and sellers, where each has a negligible effect on the market price.

Average Total Cost

The cost per unit of output, calculated by dividing the total production cost by the quantity of output produced.