A Firm Has Achieved Technological Efficiency Whenever It Has

question 332

Multiple Choice

A firm has achieved technological efficiency whenever it has

• A) fully depreciated all its assets.
• B) produced the given output using the fewest inputs.
• C) produced the given output at the lowest cost.
• D) all of the above.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that are becoming the global standard for the preparation of public company financial statements.

Borrowing Costs

Interest and other costs that an entity incurs in connection with the borrowing of funds.

Development Costs

Costs incurred in the design and implementation of new products or processes, which can often be capitalized and amortized over time.

Actuarial Gains

Increases in the projected benefits of a pension plan resulted from changes in actuarial assumptions or variance from expected experience.