-Using Figure 1

question 95

Multiple Choice

-Using Figure 1.5 above we know the production of 2 units of soda and 2 units of pizza is

• A)possible, but there would be unemployed resources.
• B)possible, but only if all resources were fully employed.
• C)impossible because we have the resources but do not have the technology.
• D)impossible because we have the technology but do not have the resources.

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Definitions:

Equivalent Unit

A concept used in process costing that converts partially completed units into a number of equivalent fully completed units, facilitating the calculation of unit costs.

Processing Department

A division in a manufacturing operation where a specific type of process or sequence of operations is carried out on materials to convert them into finished goods.

Materials

The physical components or substances used in the production of goods.

Cost System

An accounting framework used to record, track, and analyze the costs associated with a company's operations, helping in budgeting and financial decision-making.