The Short Run Is Usually

question 60

Multiple Choice

The short run is usually

• A)less than half a year.
• B)one to three years.
• C)two to three years.
• D)one year.
• E)four to five years.

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Definitions:

Relevant Range

The range of activity or volume over which the assumptions about fixed and variable cost behavior are valid.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Committed Fixed Costs

Expenses that a company has committed to pay over a period, which do not vary with the level of production or sales.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy.