To Achieve Large and Lasting Increases in Output

question 112

Multiple Choice

To achieve large and lasting increases in output,

• A)The production possibilities curve must shift outward.
• B)The production possibilities curve must shift inward.
• C)We must move to a point along the production possibilities curve.
• D)We must move to a point slightly below the production possibilities curve.

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Definitions:

Absorption Costing

By adopting this accounting model, all manufacturing costs including direct materials, direct labor, and both variable and fixed overheads, are rolled into the product’s cost.

Required Return

The minimum profit or yield that investors expect to earn on an investment.

Unit Product Cost

The cost to produce a single unit of product, accounting for direct materials, direct labor, and overhead on a per-unit basis.

Absorption Costing

An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.