-Refer to Figure 4

question 13

Multiple Choice

-Refer to Figure 4.1, the increase in output from point B to C is greater than the increase in output from point C to D because

• A)more workers always produce more.
• B)better workers are usually hired after the earlier ones.
• C)a small number of workers cannot take as good advantage of the division of labor as a larger number.
• D)eventually workers are up against the fact that there are fixed inputs and more workers do not add as much.

---

Definitions:

Job-Order Costing

An accounting system that accumulates costs according to individual jobs rather than processes or time periods.

Process Costing

A costing method used for homogeneous products, where costs are accumulated for a continuous process and then assigned to units of output.

Weighted-Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.

Equivalent Units of Production

A concept in cost accounting used to allocate production costs to units produced, accounting for partially completed units by converting them into an equivalent number of fully completed units.