Final answer:
Work in process (WIP) represents all partially completed units in production at a given time. Costs such as fixed, average, variable, and marginal are measured per-unit to analyze production efficiency. Production technology influences output and costs, and spreading overhead reduces per-unit fixed costs as production increases.
Option 'a' is the correct.
Step-by-step explanation:
The concept that represents all partially completed units in production at a specific point in time is work in process. Work in process (WIP) inventory accounts for the materials, labor, and overhead costs that have been invested in products that are not yet completed. Understanding the notion of per-unit cost is essential as it allows businesses to analyze the efficiency and profitability of their production processes.
Fixed costs, average costs, average variable costs, variable costs, and marginal costs are all measured on a per-unit basis, which helps in assessing the production technology utilized by a company.
The term production technology refers to the methods, equipment, and processes used to produce goods or services. It influences the quantity of output produced and the associated costs. Fixed costs are often referred to as overhead, and when these are divided by the quantity of output produced, we get the average fixed cost.
This concept of 'spreading the overhead' refers to allocating fixed costs over a larger number of units, which reduces average fixed cost per unit as production rises.