The Situation That Occurs When Adding More Resources Creates Inefficiencies

question 69

Multiple Choice

The situation that occurs when adding more resources creates inefficiencies is known as ________.

• A)diseconomies of scale
• B)marginal utility
• C)marginal returns
• D)diseconomies of scope

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Definitions:

Overapplied Overhead

A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process exceeds the amount of overhead cost actually incurred during a period.

Underapplied Overhead

A debit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost actually incurred exceeds the amount of overhead cost applied to Work in Process during a period.

Adjusted Cost

The net cost of an asset after adjusting for changes such as improvements or depreciation.

Cost of Goods Available

The total cost of inventory that a company has at its disposal for sale during a certain period, comprising both the beginning inventory and the cost of goods manufactured.