Q56
Prime cost plus variable overheads is known as________.
A.
Cost of sales
B.
Production Cost
C.
Total Cost
D.
Marginal cost
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Prime cost plus variable overheads is known as Marginal cost. Marginal cost is the change in the total cost that arises when the quantity produced is incremented by one unit; that is, it is the cost of producing one more unit of a good.