The Change in Total Benefit as Measured by Willingness to Pay

question 122

Multiple Choice

The change in total benefit as measured by willingness to pay for one more unit of a good is called

• A)marginal benefit.
• B)marginal cost.
• C)marginal utility.
• D)total utility.
• E)product price.

---

Definitions:

Period Cost

Expenses directly tied to time that are not directly tied to the production process, such as administrative expenses.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling and administrative expenses.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.