Which of the Following Statements Is True Concerning the Net

question 17

Multiple Choice

Which of the following statements is true concerning the net realizable value method of joint-process costing?

• A)The method implies a matching of output costs with revenues generated by each input.
• B)The method implies a matching of input costs with revenues generated by each output.
• C)The method implies a matching of input revenues with costs generated by each output.
• D)the method implies a matching of output costs with revenues generated by each input.

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Definitions:

Returns to Scale

The rate at which output increases as inputs are increased proportionately.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at different prices.

Deadweight Loss

A loss of economic efficiency that occurs when equilibrium for a good or service is not achieved or is not achievable.