Which of the Following Statements Is Correct

question 20

Multiple Choice

Which of the following statements is correct?

• A) Eco-intensity measures measure the relationship of output to input.
• B) Eco-intensity measures measure the relationship of input to output.
• C) Eco-efficiency is another term for eco-intensity.
• D) Eco-efficiency measures are measures of productivity.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not direct materials or direct labor, including costs associated with running the factory such as utilities and maintenance.

Overhead Cost

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as utilities and rent.

Activity-Based Costing

A method of costing that identifies the relationship between costs, activities, and products, and through this relationship assigns indirect costs to products less arbitrarily than traditional methods.

Machine-Hours

A measure of the amount of time a machine is operated, used in manufacturing to allocate costs or determine efficiency.