Efficient Production Implies That It Is

question 8

Multiple Choice

Efficient production implies that it is:

• A) possible to produce more of all goods and services.
• B) it is possible to produce more of one good without producing less of another.
• C) not possible to produce more of one good without producing less of another good.
• D) producing at a combination of goods which lies between the production possibilities curve and the origin.

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Definitions:

Production Departments

Divisions within a manufacturing company dedicated to specific production processes or tasks.

Journalize

The process of recording financial transactions in a company's journal, the first step in the accounting cycle that chronicles all financial activities.

Factory Overhead Rate

The total indirect manufacturing costs associated with production, allocated over a specific base such as labor hours or machine hours.

Machine Hours

A measure of production time used in cost accounting to allocate costs to products or services based on the time they spend being processed on a machine.