Which of the Following Statements Is True of Productivity Factors

question 68

Multiple Choice

Which of the following statements is true of productivity factors?

• A) Partial-productivity focus on a multiple inputs simultaneously.
• B) Total factor productivity (TFP) focus on a single input.
• C) It is the ratio of the quantity of output produced to the costs of all inputs used based on current prices.
• D) Comparable data for total factor productivity measurements are easily available.

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Definitions:

Overapplied

This refers to the condition in which the allocated costs in an accounting system exceed the actual costs incurred, often in the context of overhead or indirect costs in manufacturing.

Variable Component

Part of a cost or expense that changes in proportion with the level of activity or volume of output.

Fixed Component

A portion of a cost that does not change with the level of production or sales over the short term.

Overapplied

A scenario in which the overhead costs allocated are higher than the overhead costs that were actually incurred.