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

Common cost refers to a cost that is not attributable to any one segment of the business but is shared by multiple segments. In the context of the question, when the production of one service necessarily entails the production of another, the costs associated with these services are not separable and are thus considered common costs.

The Type of Cost Created from a Situation Where the Production