A Cost Benchmark Is Valid Only If the Standards Are

question 4

Multiple Choice

A cost benchmark is valid only if the standards are

• A)based on historical costs.
• B)kept up to date.
• C)reviewed by salaried assembly-line workers.
• D)practical and attainable.

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Definitions:

Per-worker Production Function

A mathematical representation showing how the amount of output produced per worker varies with the amount of capital or other inputs used per worker.

Quantity of Capital

The total assets, both physical (such as machinery and buildings) and financial, that individuals or businesses use to produce goods and services.

Outward Rotation

An expansion of the production possibilities frontier, indicating an economy's increased capacity to produce goods and services.

Technology Improvement

Enhancements in technology that lead to more efficient production processes, higher quality products, or new products and services.