The following table shows the relationship between the speed of a computer's CPU and the benefits and costs.Assume that all other features of the computer are the same,i.e. ,CPU speed is the only source of variation.
-Choosing the 5 GHz computer would be inefficient because
Definitions:
Job Order Costing System
An accounting method that accumulates costs individually for each job, suitable for manufacturing upon specific orders.
Process Costing System
An accounting methodology used for homogenous products, allocating production costs to units based on the process they go through.
Equivalent Units
A concept used in process costing to convert partially completed units into a number of equivalent full units.
Job Order Costing
An accounting system used to calculate the cost of individual jobs or batches, assigning manufacturing costs based on the specific jobs completed.
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