John Assembles Computers for the Computer Systems to Go Company

question 75

Multiple Choice

John assembles computers for the Computer Systems to Go Company.His company purchases Pentium MMX chips from Intel.When John is installing the chip it is inventory,but for Intel it is inventory.

• A)work in process;finished goods
• B)raw material;work in process
• C)raw material;finished goods
• D)finished goods;raw material

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Definitions:

Input

Resources that are used in the production process to create goods or services, such as labor, materials, and capital.

Returns To Scale

In production theory, the change in output resulting from a proportional change in all inputs; can be increasing, constant, or decreasing.

Input

Resources used in the production process of goods and services, including raw materials, labor, and capital.

Decreasing Returns

A concept in economics where each additional unit of input results in a progressively smaller increase in output, often observed in production processes.