If All Inputs Are Doubled and So Is the Resulting

question 12

Multiple Choice

If all inputs are doubled and so is the resulting output, the technology features

• A) increasing returns to scale
• B) decreasing returns to scale
• C) constant returns to scale

Identify different types of activities (unit-level, batch-level, product-level, and organization-sustaining) and their role in costing.

Understand the process of setting up and implementing an ABC system, including first-stage and second-stage allocations.

Appreciate the importance of manager and departmental involvement in the ABC implementation process.

Recognize the impact of ABC on product and overhead costs, including shifts in cost allocation between high and low volume products.

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