-Using Figure 1

question 16

Multiple Choice

-Using Figure 1.5 above you can tell that

• A)there is increasing opportunity cost.
• B)there is unemployment.
• C)there is constant opportunity cost.
• D)the technology does not exist to produce 6 units of soda and 1 unit of pizza.

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Definitions:

Equivalent Units

A method used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

Processing Department

A division or area in a manufacturing facility where a specific type of processing or production occurs.

Total Cost Transferred

The aggregate cost of goods or services moved from one stage of production to another, or from production to finished goods, within a given period.

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.