The Process Whereby a Firm Determines the Costs Associated with Organizational

question 86

Multiple Choice

The process whereby a firm determines the costs associated with organizational activities is called

• A)the internal factor evaluation matrix.
• B)cost- benefit analysis.
• C)value chain analysis.
• D)the resource- based approach.
• E)strategic cost analysis.

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Definitions:

Price-searcher Firm

A company that has the ability to set the price for its products because it does not face perfect competition.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of product.

Profit-maximizing Output

The level of production at which a company achieves the highest possible profit.

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.