A common cost occurs a. when different resources are used to produce one output. b. when the same resource is used in the output of two or more outputs. c. when a resource is used by two or more companies. d. when only one product or service is benefited.

Question

Nancy

Business

12 January, 08:43

A common cost occurs a. when different resources are used to produce one output. b. when the same resource is used in the output of two or more outputs. c. when a resource is used by two or more companies. d. when only one product or service is benefited.

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Answers (1)

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Blaine Craig · Answer 1

a. when different resources are used to produce one output

Explanation:

A common cost it's the shared expense between two (or more) producers or departments when they generate a product, operate a facility or give a service; considering this information we can conclude that the correct answer is a, when different resources (from different producers or departments) are used to produce one output (product, service, facility).

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