Technological Improvement Allows More Output to Be Obtained from a Given

question 32

True/False

Technological improvement allows more output to be obtained from a given level of inputs, thereby shifting the production possibilities curve to the right.

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Definitions:

Alternatives

Various options or choices available in a decision-making process.

Relevant Costs

Costs that will be affected by a decision and are future-oriented.

Predetermined Overhead Rate

A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.

Special Order

A one-time order or contract that is outside of a company’s normal production or service offerings, often requiring special terms.