Which of the Following Is Not Correct? a Typical Production

question 106

Multiple Choice

Which of the following is not correct? A typical production possibilities curve

• A) indicates how much of two products society can produce.
• B) reveals how much each additional unit of one product will cost in terms of the other product.
• C) specifies how much of each product a society will want to produce.
• D) indicates that to produce more of one product, a society must forgo larger and larger amounts of the other product.

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Definitions:

Resource Consumption

The amount of resources (such as raw materials, energy, or labor) used by an organization in its operational processes.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption.

Activity Cost Pools

A grouping of all costs related to a particular business activity, used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measurement of the amount of time machines are used in production during a specific period.