If Fixed Production Costs Are Not Allocated to Manufactured Products,this

question 139

Multiple Choice

If fixed production costs are not allocated to manufactured products,this conveys the idea that ________.

• A) fixed costs are not necessary to manufacture a product.
• B) fixed costs are necessary to manufacture a product.
• C) variable costs are less important than fixed costs to manufacture a product.
• D) fixed costs are more important than variable costs to manufacture a product.

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Definitions:

Shirking

Working at less than the expected rate of productivity, which reduces output. Shirking is more likely when workers are not monitored, so that the cost of lower output falls on others.

Corporate Business Structure

Corporate business structure refers to the legal organization of a company, often characterized by the issuance of shares, a board of directors, and liability protection for its shareholders.

Productive Contribution

The input or service provided by a factor of production towards the making of goods and services.

Corporate Form

A legal structure for businesses recognized as separate entities from their owners, providing limited liability protection and enabling easier access to capital.