To Answer,refer to the Following: "Ford Built 18 Vehicles Per

question 93

Multiple Choice

To answer,refer to the following: "Ford built 18 vehicles per auto employee in North America last year,while GM could only manage 12." The Wall Street Journal)
In comparison with GM,Ford had a higher

• A)average product of labor.
• B)average product of capital.
• C)marginal product of labor.
• D)marginal product of capital.

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Definitions:

Perpetual Inventory System

An inventory management system where updates to inventory records are made in real-time following each sale or purchase transaction.

FIFO

An inventory valuation method that assumes the first items acquired are the first ones sold, standing for First-In, First-Out.

Last-in, First-out

An inventory valuation method where the most recently produced or purchased items are the first to be expensed, often used to manage costs and taxes.

Last-in, First-out Method

An inventory valuation method where the goods purchased last are considered sold first for cost of goods sold calculation.