Examlex

Solved

The Difference Between Operating Profits in the Master Budget and Operating

question 133

Multiple Choice

The difference between operating profits in the master budget and operating profits in the flexible budget is called:


Definitions:

Industry Equilibrium Price

The price at which the total quantity demanded by consumers equals the total quantity supplied by firms in an industry.

Perfectly Elastic

A situation in demand or supply where quantity demanded or supplied changes infinitely with any change in price.

Marginal Revenue

The additional income received from selling one more unit of a good or service. It is an important concept in microeconomics and business when determining the optimal level of sales and production.

Profit-Maximizing Level

The point at which a firm achieves the highest profit possible, where marginal cost equals marginal revenue.

Related Questions