A Process That Measures All Costs Involved in Creating, Producing

question 11

Multiple Choice

A process that measures all costs involved in creating, producing, and using a product is known as:

• A) Outcome performance measures
• B) Balanced scorecard
• C) Leading performance measures
• D) Life cycle costing

---

Definitions:

Industry Supply Curve

A graphical representation showing the total quantity of a good or service that producers in an industry are willing and able to supply at different price levels.

Marginal Cost Curves

A graphical representation showing how the cost of producing one more unit of a good varies with the quantity of the good produced.

AVC

Average Variable Cost, which is the total variable costs divided by the quantity of output produced.

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the quantity of output produced.