Match Each Phrase That Follows with the Term A-H It

question 127

Multiple Choice

Match each phrase that follows with the term a-h it describes.
-costing system used by a company producing computer chips

• A)direct labor and factory overhead
• B)direct labor and direct materials
• C)transferred in costs
• D)equivalent units
• E)process costing
• F)job order costing
• G)first-in, first-out method
• H)cost of production report

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, a fundamental concept in economics that emphasizes the potential benefits that are lost when choosing one option over another.

Comparative Advantage

The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.

Specialize

The process of focusing effort and resources on a particular area of expertise or production to increase efficiency and output.

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, illustrating the trade-offs and opportunity costs.