Operational Costing Is Appropriate Where

question 32

Multiple Choice

Operational costing is appropriate where
i. there are different material inputs.
ii. there are common material inputs.
iii. processes are identical.
iv. different combinations of specific processes apply to different products.

• A) i and ii
• B) ii and iii
• C) ii and iv
• D) i and iv

---

Definitions:

Output Per Worker

A measure of productivity calculated by dividing the total output of goods or services by the number of workers.

Natural Resource Endowments

The stock of natural resources, like minerals, forests, and waterways, that a country possesses, which can influence its economic development.

Real Earnings

Earnings adjusted for inflation, depicting the real purchasing power of income.

Automated Production

involves the use of control systems and machinery to handle tasks in manufacturing with minimal human intervention.