Which of the Following Statements Is Sequentially Correct

question 139

Multiple Choice

Which of the following statements is sequentially correct?

• A)Changes in marginal physical product change marginal cost, which changes average variable and average total cost.
• B)Changes in marginal cost change marginal physical product, which changes average variable and average total cost.
• C)Changes in average variable cost change marginal cost, which changes average total cost, which changes marginal physical product.
• D)Changes in average variable and average total cost change marginal cost, which changes marginal physical product.

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Definitions:

Batch Size

The quantity of units produced in a single production run or batch, affecting efficiency and cost.

Complexity

The state or quality of being intricate or complicated, often referring to processes, systems, or issues with many interrelated parts or aspects.

Value-added Activities

Activities that increase the value of goods or services to the consumer, thereby making them more valuable in the eyes of customers.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, improving cost accuracy.