A Certain Production Process Requires Only Two Types of Inputs

question 71

Multiple Choice

A certain production process requires only two types of inputs - capital and labor.In 2006,100 units of labor and 50 units of capital were employed,and 100 units of output were produced.In 2013,112 units of labor and 56 units of capital were employed.If the production process displays constant returns to scale,then how many units of output were produced in 2013?

• A)100
• B)112
• C)124
• D)144

Recognize the motivational implications of standard costs for employee performance.

Understand how financial reporting systems use the principle of exceptions to focus on variances.

Learn about variance analysis, including how to calculate and interpret different variances.

Appreciate the role of standards and variances in efficient production and cost control.

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Definitions:

Optimal

Optimal describes the most desirable or advantageous condition or level of performance achievable under given circumstances.

Ranking Items

A method used to sort or prioritize items, tasks, or options based on specific criteria.

Criterion

A standard or principle by which something is judged or decided.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making.