Personal Computers Are Becoming Less Expensive as New Technology Reduces

question 134

Essay

Personal computers are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of computers.

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Definitions:

Variances

The difference between expected and actual performance or costs in business operations.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead costs.

Standard Cost System

A system of accounting that uses cost standards for costing materials, labor, and overhead.

Fixed Manufacturing Overhead Rate

This refers to the rate at which all fixed manufacturing costs are allocated across units produced, typically calculated at the beginning of a fiscal period.