Total Factor Productivity Will Increase If ________

question 164

Multiple Choice

Total factor productivity will increase if ________.

• A) technical productivity occurs
• B) the company uses more total inputs per output
• C) the company incurs fewer costs per input
• D) current technology becomes obsolete

Recognize the purpose and method of pooling costs in activity-based costing.

Identify the effects of different allocation bases on overhead assignment.

Calculate overhead assigned to products or units based on given rates and activities.

Understand the objectives and principles behind the creation of accounting standards by the FASB and the flexibility offered by IFRS.

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Definitions:

Fixed Costs

Fixed expenses unaffected by variations in production volume or sales, like lease payments, employee salaries, and insurance fees.

Variable Costs

Expenses that vary directly with the volume of production or services a company offers, including labor and materials.

Total Revenue

A company's aggregate income from product sales and service charges within a set timeframe.

Variable Costs

Expenditures that shift in accordance with the scale of output or level of production activities.