The Cost of a One-Unit Increase in an Activity Is

question 173

Multiple Choice

The cost of a one-unit increase in an activity is called the

• A) opportunity benefit.
• B) rational cost.
• C) marginal cost.
• D) marginal benefit.
• E) margin.

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Definitions:

Fixed Overhead

Expenses that do not vary with production volume, including rent, salaries, and insurance.

Property, Plant, and Equipment

Long-term assets used in the operations of a business, not intended for sale.

Insurance

A financial product that provides protection against financial losses from specific risks, such as accidents, theft, or natural disasters.

Depreciation

A method to allocate the cost of a tangible asset over its useful life.