Slife Corporation Has Provided the Following Data Concerning Its Most

question 2

Multiple Choice

Slife Corporation has provided the following data concerning its most important raw material, compound G81N: When recording the use of materials in production, Raw Materials would be:

• A)debited for $68,558.
• B)credited for $83,839.
• C)credited for $68,558.
• D)debited for $83,839.

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Definitions:

Diseconomies of Scale

Diseconomies of scale occur when a company or business grows to such a point that the costs per unit increase, opposite of achieving cost efficiencies through expansion.

Specialization

The process of focusing effort and resources on a limited number of activities to increase efficiency and productivity.

Constant Returns to Scale

A situation in which increasing the amount of inputs in production results in a proportional increase in output.

Long-run Total Costs

The total costs incurred by a firm when all factors of production are variable, emphasizing the period where no costs are fixed.