Industry Expansion Cannot Occur Without Firms Entering an Industry

question 95

True/False

Industry expansion cannot occur without firms entering an industry.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable overhead) in product cost calculations, excluding fixed manufacturing overhead.

Net Operating Income

Net Operating Income (NOI) is the total pre-tax profit a company generates from its operations, excluding expenses such as interest and taxes.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Net Operating Income

Profit or loss from a company's operations after all operating expenses are subtracted from operating revenues, but before interest and taxes are deducted.