Multiple Choice
Which of the following statements is correct? In economics, a marginal cost is:
A) The cost of producing one additional item
B) The amount of profit that can be made by incurring the cost of one additional item
C) Total costs divided by total items produced
D) Fixed costs divided by target profit
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Lindsay Fabrications Limited produces the YT32, which
Q2: Avoidable costs are relevant costs.
Q3: Priddy Products Limited manufactures an industrial grade
Q4: A relevant cost is a future variable
Q5: The following is the budgeted income and
Q7: Marginal costing is useful for which important
Q8: Fixed cost will always be irrelevant costs.
Q9: Sunk costs can easily be identified in
Q10: The time period over which the relationship
Q11: Last year ABC Ltd sold 5000 units