Final answer:
The main features of standard cost include aspects like materials, labor, and overall costs, and it's a technique for budgetary control. Production technology affects total cost through its combination of labor and machinery, with firms adjusting as labor costs fluctuate. (option d)
Step-by-step explanation:
The main features of the standard cost typically involve a combination of elements that are essential for calculating the cost of production. These include materials, labor, and overhead costs. Standard costing is a technique that uses cost estimates to predict the cost of production under normal conditions. It is applied for budgetary control and cost management, particularly useful for managers in making decisions.
In the context of production technology, it refers to the blend of labor, physical capital, and technology utilized in production methods. Specific production technologies can vary in their use of labor and machinery, and the choice of technology can impact the total cost. For instance, as labor costs increase, firms may opt for technologies that rely more on machinery and less on labor to optimize production costs, as outlined in Table 7.14.
Example B demonstrates how in certain scenarios, such as when workers cost $55 and machines cost $80, businesses must consider these costs when selecting the appropriate production technology. The optimal mix of labor and capital will depend on their respective costs and the desired efficiency.