The type of cost created from a situation where the production of one service necessarily entails the production of another service is known as a:
A) separable unique cost.
B) common cost.
C) fixed universal cost.
D) variable general cost.

Question

Quizplus · Accepted Answer

A common cost is created when the production of one service results in the production of another service, and the cost cannot be separately identified with either service. The other options do not accurately describe this type of cost.

The Type of Cost Created from a Situation Where the Production