The Production Function Y = F(k) Means

question 68

Multiple Choice

The production function y = f(k) means:

• A) labor is not a factor of production.
• B) output per worker is a function of labor productivity.
• C) output per worker is a function of capital per worker.
• D) the production function exhibits increasing returns to scale.

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Definitions:

Departmental Overhead Rates

Specific rates used to allocate overhead costs to products or cost objects based on the expenses of different departments.

Allocation Base

A measure used to distribute costs among different departments, products, or activities, typically related to the amount of resources consumed.

Unit Product Costs

The complete expense incurred in the creation of a single unit of a product, encompassing materials, workforce, and indirect costs.

Indirect Labor

Labor costs associated with employees who do not directly work on a product, but whose services are necessary for the manufacturing process.