The Number of Units Required for Production Is Equal To

question 146

Multiple Choice

The number of units required for production is equal to:

• A) budgeted sales plus units in the beginning inventory minus the units in the ending inventory.
• B) budgeted sales plus units in the ending inventory minus the units in the beginning inventory.
• C) budgeted sales plus the units in the ending inventory.
• D) budgeted sales minus the units in the beginning inventory.

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor, keeping other factors constant.

Resource

An asset or input that is utilized in the production of goods and services, such as labor, capital, and raw materials.

Units

Basic quantities or measurements used to express a variable or to quantify the elements in an analysis.

Employed

Refers to individuals who are currently working in a paid job or running a business.