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The association of production costs with the units produced is referred to as cost

a. depletion.
b. accumulation.
c. assignment.
d. measurement.

1 Answer

4 votes

Final answer:

The association of production costs with the units produced is called assignment. It is crucial for determining how to distribute production costs over the units made. Production technology combines labor, capital, and technology, affecting the per-unit cost of production through economies or diseconomies of scale.

Step-by-step explanation:

The association of production costs with the units produced is referred to as c. assignment. In the context of business and economics, assignment of costs is the process of linking production costs, such as materials, labor, and overhead, to specific units of output. It involves determining how the costs of producing goods are distributed across the units that are produced.

A production technology refers to the method of combining labor, physical capital, and technology to produce goods or services. Factors like economies of scale and diseconomies of scale influence the long-run average costs of production, where economies of scale lead to reduced per-unit costs as output increases, and diseconomies of scale result in increased long-run average costs as output continues to increase.

Costs measured on a per-unit basis include average cost, average variable cost, variable costs, and marginal cost. Fixed costs, on the other hand, are not dependent on the volume of goods or services produced and therefore are not typically measured on a per-unit basis.

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