The Situation That Occurs When the Addition of Resources Creates

question 30

Multiple Choice

The situation that occurs when the addition of resources creates inefficiencies is known as ________.

• A) diseconomies of scale
• B) marginal utility
• C) marginal returns
• D) break-even
• E) inverse efficacy

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Definitions:

Maintenance Cost

Expenses incurred to keep property, equipment, or assets in effective operating condition.

Machine Hour

A measure of production time, representing the time a machine is operated to perform work.

High-low Method

A technique used in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Cost

Costs that change in proportion to the activity or business volume, such as materials and labor directly involved in production.