Final answer:
The association of production costs with the units produced is referred to as cost accumulation. Option D. Costs measured on a per-unit basis include fixed costs, average cost, average variable cost, variable costs, and marginal cost. Production technology defines the combination of labor, physical capital, and technology used in producing goods or services.
Step-by-step explanation:
Cost accumulation is the association of production costs with units produced.
When examining costs on a per-unit basis in economics and accounting, we typically analyze various types of costs such as fixed costs, which are expenditures that do not change regardless of production level, and variable costs, which vary with the level of output.
Other per-unit costs include average cost, which is the total cost divided by the number of units produced; average variable cost, which is the variable cost divided by the number of units produced; and marginal cost, which is the additional cost incurred by producing one more unit of a good or service.
A production technology is a specific combination of labor, physical capital, and technology that makes up a method of production.
Understanding production technology helps firms determine the least costly way to produce goods or services.
This analysis is crucial for making decisions about economies of scale, where increasing production can lead to lower average costs per unit due to spreading fixed costs over a larger number of goods.
Hence, the right answer is option D.