It Is Important to Include Small Inexpensive Items (Such as Glue

question 36

True/False

It is important to include small inexpensive items (such as glue or nails)related to production as direct materials,in order to calculate accurate product cost data.

---

Definitions:

Returns to Scale

The rate at which output increases in response to a proportional increase in all inputs (factors of production).

Long-Run Average Total Cost Curve

A graphical representation showing the lowest possible average cost of production, allowing all factors of production to vary in order to minimize cost.

Shape

A distinct form or appearance of an object, often defined by its external boundaries.

Variable Cost

Costs that change in proportion to the level of activity or production volume.