If Total Output Grows at 4 Percent Per Year While

question 145

Multiple Choice

If total output grows at 4 percent per year while labor and capital grow at 1.5 percent and 2.1 percent pre year, respectively, then:

• A) technology grew by 3.6 percent per year.
• B) technology declined by 0.4 percent per year.
• C) technology grew by 0.4 percent per year.
• D) there was no technological progress.

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Definitions:

Allocation Base

A measure used to distribute costs among different departments, products, or activities, typically related to the amount of resources consumed.

Unit Product Costs

The complete expense incurred in the creation of a single unit of a product, encompassing materials, workforce, and indirect costs.

Indirect Labor

Labor costs associated with employees who do not directly work on a product, but whose services are necessary for the manufacturing process.

Job-Order Cost System

An accounting system that collects and assigns manufacturing costs to individual units or batches of production, enabling precise tracking of material, labor, and overhead costs.