Refer to the Table Below A)2
B)3
C)4
D)5

question 41

Multiple Choice

Refer to the table below. According to the Cost-Benefit Principle, how many units of this activity should be carried out? $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Activity }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Benefit }\end{array} \\\hline 0 & \$ 0 & \$ 0 \\\hline 1 & \$ 2 & \$ 12 \\\hline 2 & \$ 6 & \$ 22 \\\hline 3 & \$ 12 & \$ 30 \\\hline 4 & \$ 20 & \$ 36 \\\hline 5 & \$ 30 & \$ 40 \\\hline 6 & \$ 42 & \$ 42 \\\hline 7 & \$ 56 & \$ 43 \\\hline\end{array}$$

• A)2
• B)3
• C)4
• D)5

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Definitions:

Raw Materials

Basic materials that are processed and used in the manufacturing of goods or products.

Work in Process

A stage in the manufacturing process where the product is partially completed but not yet ready for sale.

Direct Materials

These are the raw materials that can be directly traced to the production of a product.

Direct Labor

Labor costs directly tied to the production of goods or services, including wages for workers who assemble products or operate machinery.