Common costs exist because each user obtains a lower cost by sharing than the separate cost that would result if such user were an independent entity.

Question

Quizplus · Accepted Answer

Common costs refer to the cost savings that result from multiple users sharing a single resource or service, as opposed to each user bearing the full cost of a separate resource or service. This statement is true as it correctly describes the main benefit of common costs.

Common Costs Exist Because Each User Obtains a Lower Cost