The Long Run Is a Period of Time, or a Time

question 212

Multiple Choice

The long run is a period of time, or a time frame, in which

• A)all resources are fixed in quantity.
• B)the level of output is variable.
• C)the amount of all resources can be varied.
• D)the capacity of the production plant is fixed.

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Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of work done by manufacturers in terms of fully completed units.

Materials

Items or supplies used in the production of goods, considered part of the direct costs in manufacturing.

FIFO Method

"First In, First Out," an inventory valuation method that assumes goods are sold in the order they are acquired, impacting the cost of goods sold and inventory value.

Equivalent Units

A term used in process costing to measure the amount of work done on incomplete products, converted into an equivalent number of fully completed units.