0
As production of an item increases what impact does that typically have on the unit cost?
Wiki User
∙ 7y ago
Unit cost decreases
Mike Romberger
Stefanie Raynor
Michael Romberger
Lamar Gibson
Add your answer:
Earn +20 pts
What is the production cost of a pen?
The cost of production for a pen varies. Pens that have more functionality typically cost more to produce than pens that are generic.
What is the difference between overhead cost and fixed cost?
Fixed cost is a cost that does not typically vary on unit production. On the other hand overhead cost is the summation of all variable cost.
Distinguish between fixed cost and variable cost?
A fixed cost is a cost (in the short-run) that does not change based on the production output in a business; i.e. no matter how many products a company makes/sells, these costs do not change. Examples include rent, salaries, and insurance. A variable cost is a cost (in the short-run) that changes based on the amount of output in a business; i.e. the cost increases if the company makes/sells more products, and vice-versa. Examples include wages, cost of goods sold, and income tax. Under classical economic theory, all costs are variable in the long-run.
Should additional cost on machinery be expensed or capitalized if that machinery increases production According to IAS 16?
If additional cost is causing and increase in the capacity of machinery and has substantial value then it will be added to the cost of machinery otherwise it will be expensed.
Different types of costs of production?
production cost, selling cost and sundry cost
What is the cost that increases with each additional unit produced?
Marginal cost of production
What does new technology generally do to production?
It lowers cost and increases supply.
How does subsidy affect supply?
It decreases cost of production and increases supply.
Why is the PPF typically bowed outward?
When the PPF graph bows outward it usually means that, as the production of one good continues to grow, the opportunity cost of producing another good increases
What is the production cost of a pen?
The cost of production for a pen varies. Pens that have more functionality typically cost more to produce than pens that are generic.
What is the word for an idea that has production increases cost per item decreases?
cartel
Idea that as production increases cost per item decreases?
economies of scale :)
Why does marginal cost rise as production increases?
Marginal cost is equal to the ratio of change in total cost or total variable cost to change in quantity of output. Marginal cost increases as total product increases since it reflects the law of diminishing marginal returns.
What of the following is the most direct cause of cost push inflation?
Rising production costs.
What is the opportunity cost if the production of cellphones increases from 10 to 30 cellphones per day?
no
In what ways can the location decision have an impact on the production system?
The location decision can have an impact on the production system due to the availability of resources and transportation. When supplies are close, production costs will be lower. In this case, the company can use a Just In Time production system to help reduce warehouse costs.
How do fixed cost different from variable cost?
Variable costs are different in this sense that fixed cost remains fixed and it has no impact of change in production level while variable cost changes with the change in production level.
