Match Each Item with the Correct Statement Below

question 85

Multiple Choice

Match each item with the correct statement below.
-The length of time it takes to produce a unit of output from the time raw materials are received until the good is delivered to finished goods inventory.

• A)cycle time
• B)direct tracing
• C)activity sharing
• D)driver tracing
• E)value-added activities
• F)activity selection

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and outputs are optimal, allowing for all economic agents to have no incentive to change their behavior.

MC

A term often short for Marginal Cost, which is the cost added by producing one additional unit of a product or service.

MR

Short for Marginal Revenue, which is the additional income earned by selling one more unit of a product or service.

ATC

Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the quantity of output produced.