Gold Is Often Found at the Bottom of Streambeds in Placer

question 46

Essay

Gold is often found at the bottom of streambeds in placer deposits.Describe the process that forms these deposits.

Understand how to calculate variable overhead efficiency variance.

Understand how standard costs are used in variance analysis.

Understand the concept and calculation of labor efficiency variance.

Understand the concept and calculation of variable overhead rate and efficiency variances.

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Definitions:

Diminishing Marginal Returns

A principle stating that as more of a variable input is added to a fixed input, beyond some point, the additional output produced from the additional input will eventually start to decrease.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as production volume changes.

Average Variable Cost

The total variable costs of production divided by the number of units produced, measuring the cost per unit that varies with output level.

Marginal Costs

The increase in total cost that arises from an extra unit of production.