Refer to the Information Provided in Figure 31

question 130

Multiple Choice

Refer to the information provided in Figure 31.1 below to answer the question(s) that follow. Figure 31.1
-Refer to Figure 31.1. Technological progress will cause a

• A) movement from Point A to Point B.
• B) movement from Point B to Point A.
• C) shift from ppf₂ to ppf_1.
• D) shift from ppf₂ to ppf_3.

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Definitions:

Flexible Budget

A flexible budget adjusts expenses based on changes in actual revenue or other activities, allowing for more accurate budgeting and variance analysis.

Variable Costs

Expenses that vary in direct proportion to changes in activity levels or volumes, such as raw materials and direct labor costs.

Fixed Costs

Costs that remain constant in total regardless of changes in the activity level within a relevant range.

Fixed Costs

Costs that do not vary with the level of output or sales in the short term, such as lease payments, insurance, and salaries of permanent staff.