The Total Output Produced by a Firm Divided by the Quantity

question 29

Multiple Choice

The total output produced by a firm divided by the quantity of workers employed by the firm is the definition of

• A)the marginal product of labor.
• B)the division of labor.
• C)the average product of labor.
• D)the average cost of production.

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Definitions:

Straight-line Method

A method of calculating depreciation and amortization by evenly distributing the cost of an asset over its useful life.

Salvage Value

The projected value at which an asset can be sold after its period of usefulness, utilized in the computation of depreciation costs.

Depreciated

The reduction in value of an asset over time due to wear and tear, age, or obsolescence, commonly used in accounting to allocate the cost of an asset over its useful life.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.