Match Each of the Following Terms with the Appropriate Definitions

question 164

Multiple Choice

Match each of the following terms with the appropriate definitions.

-The insufficient capacity of plant assets to meet the company's productive demands.

• A)Obsolescence
• B)Amortization
• C)Depletion
• D)Salvage value
• E)Book value
• F)Land improvements
• G)Copyright
• H)Inadequacy
• I)Patent

Understand the steps involved in implementing an ABC system.

Recognize the role of cost pools in ABC.

Analyze the effects of using ABC on identifying profitable products.

Understand the development and structure of the Accounting Standards Codification by FASB.

---

Definitions:

Long-Run Average Total Cost Curve

A graphical representation showing how the average total cost of production varies with output level in the long run, when all inputs are variable.

Short Run

A period in economics during which at least one factor of production is fixed, limiting the ability to fully adjust to new market conditions.

Long Run

The time period in economics during which all inputs or factors of production can be adjusted or changed, contrary to the short run where some inputs are fixed.

Long-Run Average Total Cost Curve

A graphical representation illustrating the per unit cost of producing a good or service in the long run, when all inputs are variable.