What Does the Production Possibility Curve Imply About the Resource

question 144

Multiple Choice

What does the production possibility curve imply about the resource allocation?

• A)Only some points on the curve are efficient.
• B)All points on the curve are equally efficient.
• C)A point which lies below the curve is more efficient.
• D)A point which lies above the curve is readily achievable.

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Definitions:

Standard Cost

A predetermined cost of manufacturing, storing, and marketing a product, used for budgeting and performance evaluation.

Variances

Differences between planned or expected financial performances to the actual financial performance.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to measure actual performance against expected results.

Cost Of Goods Sold Account

An account in the general ledger that tracks the direct costs attributable to the production of the goods sold by a company.