Which of the Following Quotes Best Illustrates the Idea of Total

question 70

Multiple Choice

Which of the following quotes best illustrates the idea of total product?

• A)"If I have 10 workers on my assembly line,I can produce 13 tables a day."
• B)"If I add an 11th worker,I can produce 1 extra table a day."
• C)"Each worker produces 2 tables a day."
• D)"I find if I add an extra shift at night,table production only rises by 80 percent because I need more maintenance time on the assembly line."
• E)"If I double workers and double the assembly line,I can make 120 percent more tables."

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Definitions:

Future Cash Flows

Estimates of the amount of money expected to be received or paid out over future periods.

Asset

Resources owned or controlled by a business, expected to provide future economic benefits.

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, allowing more depreciation in the earlier years of an asset’s life.

Depreciation Expense

The portion of an asset's cost allocated over its useful life to account for its decline in value over time.