The Above Diagram Shows the Short-Run Average Total Cost Curves

question 153

Multiple Choice

The above diagram shows the short-run average total cost curves for five different plant sizes of a firm.The shape of each individual curve reflects:

• A) increasing returns,followed by diminishing returns.
• B) economies of scale,followed by diseconomies of scale.
• C) constant costs.
• D) increasing costs,followed by decreasing costs.

---

Definitions:

Cost Reconciliation Report

A report that bridges the gap between the opening and closing balances of a job or project, detailing all the costs incurred.

Ending Work in Process Inventory

The total value of partially completed goods that are still undergoing production at the end of an accounting period.

Job-order Costing

An accounting method used to track the expenses of specific jobs and calculate the cost of production for each job.

Process Costing

Process costing is an accounting methodology used for homogeneous goods, which systematically allocates the costs of production for each unit by averaging the total costs over all units produced.