If There Is a Change in the Ability of a Firm

question 64

Multiple Choice

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

• A) human capital investment.
• B) technological change.
• C) an increase in labour productivity.
• D) a movement along a given per-worker production function.

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Definitions:

Costs Transferred

The expenses that are moved from one department or project to another within the same company.

Underapplied Overhead

A situation in accounting where the allocated overhead for a period is less than the actual overhead incurred.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including salaries of non-direct labor, maintenance, and factory supplies.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.