The Marginal Cost of the Fourth Unit of Output in

question 91

Multiple Choice

$\begin{array}{l}\begin{array} { | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (Units per Day) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (Dollars per Day) }\end{array} \\\hline 0 & 16 \\\hline 1 & 30 \\\hline 2 & 42 \\\hline 3 & 58 \\\hline 4 & 78 \\\hline\end{array}\\\text { Table 21.4 }\end{array}$ The marginal cost of the fourth unit of output in Table 21.4 is

• A)$4.00.
• B)$20.00.
• C)$16.00.
• D)$19.50.

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Definitions:

Job Order Cost System

An accounting system that assigns costs to specific production batches or jobs, useful for companies producing unique or custom products.

Process Cost System

A method of accounting used in manufacturing where costs are assigned to products based on the processes they undergo.

Fringe Benefits

Additional compensations given to employees beyond their regular salary or wages, such as health insurance, retirement plans, or company cars.

Factory Labor

The workforce involved in the manufacturing process, whose wages are considered direct costs to the production of goods.