Unit Cost Information Is Needed for

question 64

Multiple Choice

Unit cost information is needed for

• A) costing inventory.
• B) financial reporting requirements.
• C) decision making.
• D) all of these.

---

Definitions:

Production Possibilities Frontier

The production possibilities frontier (PPF) is a curve depicting all maximum output possibilities for two or more goods, given a set of inputs.

Opportunity Cost

The value of the next best alternative that is forgone as a result of making a particular choice.

Inputs

In economics, inputs are the resources used in the production of goods and services, such as labor, materials, and capital.

Trade-off

A situation where making a decision to gain one thing requires sacrificing another.