In the Production Possibilities Model,the Vertical Axis Measures ________ and the Horizontal

question 219

Multiple Choice

In the production possibilities model,the vertical axis measures ________ and the horizontal axis measures ________.

• A) the quantity of a good or service; the quantity of another good or service
• B) the price of a good or service; the quantity of the good or service
• C) the price of a good or service; the price of another good or service
• D) the quantity of a good or service; time
• E) people's wants; the quantity of a good or service

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Definitions:

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services.

Standard Cost System

An accounting framework where standard costs are used for cost control and decision making, typically involving the setting of predetermined costs for products and services.

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard labor hours expected, multiplied by the labor rate.

Work in Process

Goods partially completed during the manufacturing process, not yet ready for sale.