Answer:
d. beyond some point, the production costs of additional units of output will rise
Explanation:
To answer this question you need to know the concept of marginal productivity. This concept is associated with input productivity and aims to explain how many inputs are needed to produce one more unit of output. Firms seek to produce more units with fewer inputs. Thus, the ideal is for marginal productivity to be increasing. This can happen over time as production increases. However, at some point marginal productivity will decrease and this will increase production costs if the firm does not stop producing.
To be clear, follow an example. Imagine that a pizza parlor uses two employees to produce 5 pizzas per hour. Now imagine that the pizza factory is experiencing increased demand for pizza and hiring more an employee. Now the pizzeria has hired 1 more employee and produces 10 pizzas. Note that hiring 1 employee increased the total productivity of the pizzeria. Previously 5 pizzas were produced by 2 employees, an average of 2.5 pizzas per employee. After hiring the third employee, this production increased to 3.3 pizzas per employee. Now imagine that the pizzeria hires 3 more employees and produces only 14 pizzas, an average of 2.3 pizzas per employee. In this case, productivity decreased due to structural factors, such as the number of ovens and the size of the pizzeria. Therefore, in the long run, production costs tend to increase when firms increase production greatly.
Answer:
The way the costs of direct labor and factory overhead applied are treated in a process costing system is different from their treatment in a job costing system. In process costing system, they are debited to the Work in Process account.
The reason for this is that in process costing, costs are not directly attributable to individual jobs. Instead, costs are accumulated in Work in Process before they are assigned to individual production units.
Explanation:
Job order costing system accumulates costs for individual jobs while a process costing system accumulates costs in the Work in Process account and then allocates the costs to individuals units of production. The difference depends on the nature of the two systems and how possible it is to identify the costs and attribute them to individual jobs or units.
Answer:
The correct answer is B. the expected interest rate for the next year and the current value of the furniture.
Explanation:
To compute the cost of owning the furniture for the next year we need 2 bits of information, the expected interest rate for the next year and the current value of the furniture.
As we need the cost of the next year, we don´t care about the interest we pay in the past. We need what we have to pay in the future.
And also , we need the current value of the antique furniture so we can know the cost of opportunity of running the antique furniture. ( If we don´t run this business , what can we do with that money?)
The cost of goods sold for Day Company for the period ended December 31, 2021, is $5,000.
<h3>What is the cost of goods sold?</h3>
The cost of goods sold is the difference between the beginning inventory added to the period's purchases or finished goods while subtracting the ending inventory.
In other words, the cost of goods sold is the difference between the cost of goods available for sale and the ending inventory.
<h3>Data and Calculations:</h3>
Beginning inventory = $1,000
Purchases = $7,000
Ending inventory = $3,000
Cost of goods sold = $5,000 ($1,000 + $7,000 - $3,000)
Thus, the cost of goods sold for Day Company for the period ended December 31, 2021, is $5,000.
Learn more about the cost of goods sold at brainly.com/question/25947903
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