If We Produce One More Bottle of Water

question 44

Multiple Choice

If we produce one more bottle of water,

• A)we cannot be acting efficiently.
• B)we incur a marginal cost.
• C)we must move away from market equilibrium.
• D)the price of a bottle of water must rise.
• E)the marginal social benefit from bottled water increases.

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Definitions:

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual amount of time it takes to produce them, using time as the main driver for cost.

Order Fulfillment Department

A section within an organization responsible for processing customer orders, ensuring they are picked, packed, shipped, and delivered efficiently.

Capacity Analysis

The method of calculating the production capability required by an organization to adapt to the fluctuating needs for its products.

Time-Driven Activity-Based Costing

A method of costing that assigns costs to products based on the estimated time required for activities and the cost of supplying those activities.