An Improvement in Production Technology Will

question 9

Multiple Choice

An improvement in production technology will

• A)increase a firm's costs and increase its supply.
• B)increase a firm's costs and decrease its supply.
• C)decrease a firm's costs and increase its supply.
• D)decrease a firm's costs and decrease its supply.

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Definitions:

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with production volume, such as utilities or materials used only in production.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Cash Account

An account that records all transactions made in cash, including receipts and payments.

Direct Labor Costs

The wages paid to workers who are directly involved in the production of goods or the provision of services, excluding the cost of materials and overhead.