The Extra Cost Associated with Producing or Consuming the Next

question 48

Multiple Choice

The extra cost associated with producing or consuming the next unit is called the:

• A) variable cost.
• B) marginal cost.
• C) utility cost.
• D) sunk cost.

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Definitions:

Computer Equipment

Tangible assets including computers, servers, and other technology-related hardware used in the operation of a business or for personal use, subject to depreciation.

Business Auto

A vehicle owned by a company and used for business operations, which can include transportation of goods, services, or employees.

Adjusted Basis

The original cost of a property adjusted for factors such as depreciation or improvements, used in calculating capital gains or losses for tax purposes.

Wash Sale

A tax term referring to the sale of a security at a loss and the repurchase of the same, or substantially the same, security shortly before or after, which disallows the claim of the loss for tax purposes.