What Did Mining, Cattle Ranching, and Wheat Farming Have in Common

question 72

Multiple Choice

What did mining, cattle ranching, and wheat farming have in common?

• A) Most people who tried their hand at them made money.
• B) Slow economic growth made them safe investments.
• C) Boom and bust economic cycles affected them.
• D) The work itself was not hard.
• E) They depended on massive government subsidies.

Compute efficiency measures like cycle efficiency and the manufacturing cycle time.

Determine the cost of goods manufactured.

Understand the components and structure of the manufacturing statement.

Distinguish between product and period costs, and understand their impact on financial statements.

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Definitions:

Fixed Cost Per Period

Costs that do not vary with the level of production or sales within a certain range and time frame, such as rent or salaries.

Mixed Cost

A cost that contains both variable and fixed cost elements and changes in total with the level of activity, but not proportionately.

Maintenance Cost

Expenses incurred to keep property, equipment, or assets in effective operating condition.

Machine Hour

A measure of production time, representing the time a machine is operated to perform work.