Which of the Following Is a Short-Run Adjustment

question 98

Multiple Choice

Which of the following is a short-run adjustment?

• A)Toyota builds an automobile plant in Kentucky.
• B)Faced with increasing enrollment, a private college builds a new School of Business building.
• C)Because of staggering losses, three insurance companies exit the industry.
• D)People's Bank hires two new tellers to meet increased demand for customer services.
• E)Shaveco enters the razor blade market with a new product, produced in the United States.

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Definitions:

Manufacturing Overhead Budget

A plan that outlines the expected manufacturing overhead costs for a period, helping businesses control and allocate expenses effectively.

Direct Labor-Hour

A measure of the labor time directly involved in producing goods, often used to allocate labor costs to products.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and indirect materials.

Selling and Administrative Expense Budget

A financial plan that estimates the costs associated with selling products and managing the business, including marketing, salaries, and office expenses.