COST ACCOUNTING
VARIABLE COSTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
total product divided by the total cost.
|
|
|
total product divided by marginal product
|
|
|
total product divided by the variable input.
|
|
|
marginal product divided by the variable input.
|
Detailed explanation-1: -It is defined as the output per unit of factor inputs or the average of the total product per unit of input and can be calculated by dividing the Total Product by the inputs (variable factors).
Detailed explanation-2: -Average Product = Total Product/Quantity of the variable factor.
Detailed explanation-3: -This association between the variable input and output, keeping all the other inputs unchanged is often referred to as total product (TP) of the variable input.
Detailed explanation-4: -Average product of an input is output per unit of the input.
Detailed explanation-5: -Total product is the total amount produced per a set of resources, average product is the average cost per unit produced per set of resources, and marginal product is the cost for the very next unit to be produced in resources.