(Figure: Diminishing Returns 0) in the Table, After the _____

question 18

Multiple Choice

(Figure: Diminishing Returns 0) In the table, after the _____ worker, diminishing returns set in.
$\begin{array}{|l|l|}\hline \begin{array}{l}\text { Labor } \\\text { (Workers) }\end{array} & \begin{array}{l}\text { Output } \\\text { (Total } \\\text { Product) }\end{array} \\\hline 1 & 25 \\\hline 2 & 56 \\\hline 3 & 90 \\\hline 4 & 100 \\\hline 5 & 105 \\\hline\end{array}$

• A) second
• B) third
• C) fourth
• D) fifth

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Definitions:

Raw Material

The basic material from which a product is made, used in the initial stages of production.

Materials Price Variance

The difference between the actual cost of materials and the standard cost multiplied by the quantities purchased.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, based on the standard cost.

Materials Quantity Variance

The discrepancy between the actual use of materials in production and the planned use, each multiplied by the predetermined cost per unit.