Economies of Scale Occur When Total Costs Fall When Output

question 2

True/False

Economies of scale occur when total costs fall when output increase

Recognize the importance of group norms and team member behavior standards.

Recognize how group cohesion and team membership can impact job satisfaction and organizational productivity.

Understand different behaviors within groups and teams, including competitive and cooperative behaviors.

Identify strategies to counteract negative group behaviors such as social loafing.

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Definitions:

Absorption Costing

A methodology for product costing that comprehensively adds up the costs of direct materials, direct labor, and both fixed and variable manufacturing overheads.

Variable Costing

An accounting method that only includes variable costs (costs that change with production levels) in the cost of goods sold and treatment of fixed costs.

Production Costs

The total expenses incurred in the manufacture of products, including costs related to labor, raw materials, and overhead.

Variable Production Costs

Expenses that fluctuate with the level of output or production, including costs like raw materials and direct labor.