Which of the Following Statements Is True

question 103

Multiple Choice

Which of the following statements is true?

• A) The concept of opportunity costs cannot be illustrated within a PPF framework.
• B) If scarcity did not exist,neither would a PPF.
• C) All PPFs are downward-sloping straight lines.
• D) There are more attainable points than unattainable points in every PPF diagram.

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Definitions:

Overhead Applicable

The portion of overhead costs that are assigned to a specific product, service, or job based on a predetermined rate or method.

Direct Materials

Raw materials that are directly traceable to the manufacturing process of a specific product and integral to its production.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to consumers.

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet completed.