If an Economy Is Productively Inefficient,it Could Improve Its Situation

question 119

Multiple Choice

If an economy is productively inefficient,it could improve its situation by

• A)moving along its production possibilities boundary.
• B)moving beyond its production possibilities boundary.
• C)moving onto its production possibilities boundary.
• D)acquiring more resources.
• E)trading some of its resources.

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Definitions:

Process Costing

Process costing is an accounting methodology used for homogeneous goods, which systematically allocates the costs of production for each unit by averaging the total costs over all units produced.

Cost Reconciliation Report

A financial document used to reconcile and explain the differences between the cost of beginning and ending inventories in the manufacturing process.

Equivalent Units

A concept in cost accounting used to estimate the amount of finished goods produced from raw materials and partial productions.

Units Transferred Out

In a production or manufacturing process, this refers to the number of units completed and moved out of a process or department during a given period.