-In the Above Figure, When the Quantity Equals 400 Pretzels

question 12

Multiple Choice

-In the above figure, when the quantity equals 400 pretzels,

• A) the marginal benefit is greater than the marginal cost.
• B) producers are willing to supply 400 pretzels for $2.
• C) producers are willing to supply 400 pretzels for $3.
• D) consumers are willing to pay $2 for the 400th pretzel.

Calculate equivalent units of production using the first-in, first-out (FIFO) method.

Distinguish between direct materials, direct labor, and factory overhead costs in a process costing environment.

Transfer costs between departments in a process cost system.

Identify and calculate conversion costs in a manufacturing environment.

---

Definitions:

Legacy Factor

The influence of historical achievements or status on present circumstances, often affecting an entity's reputation, opportunities, or resources.

Affirmative Action

A policy that gives preference to women or minority group members if equally qualified people are available for a position, thus compensating for past discrimination.

Professionalization

Takes place when members of an occupation insist that people earn certain credentials to enter the occupation. Professionalization ensures standards and keeps professional earnings high.

Credentials

Documents or qualifications proving a person's background, status, or abilities.