-Using Figure 1

question 42

Multiple Choice

-Using Figure 1.7 we know the production of 10 units of soda and 1 unit 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:

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and overhead.

Make or Buy

Decision-making process used by firms to choose between manufacturing a product in-house or purchasing it from an external supplier.

Relevant Decision

A decision-making process that involves choosing among various options based on their potential impact on key business outcomes.

Idle Capacity

The unused portion of a company's production or service capacity, where resources are available but not being fully utilized.