The System Where the Cost of a Product or Service

question 100

Multiple Choice

The system where the cost of a product or service is obtained by assigning costs to masses of similar units in each department and then computing unit cost on an average basis is called

• A)A process costing system.
• B)A job costing system.
• C)An activity-based costing system.
• D)An inventory materials control system.
• E)None of the above.

Analyze the effects of capital quality and quantity on productivity.

Explain the law of diminishing marginal returns.

Assess the impact of technology on labor productivity and the production function.

Identify factors that influence labor productivity.

---

Definitions:

Classical Economic Systems

An economic framework based on free markets, limited government intervention, and the belief in the efficiency of market outcomes as guided by invisible hand principles.

Economy

A system of production, distribution, and consumption of goods and services within a particular geographical area.

Full Employment GDP

The output level produced in an economy when labor resources are fully employed, but not over-employed.

Spending

The expenditure of money on goods, services, or other items by individuals, businesses, or governments.