Which of the Following Types of Budgets Is Based on the Cost

question 48

Multiple Choice

Which of the following types of budgets is based on the cost of customer acquisition and retention and the combination of new and retained customers?

• A)top-down budget
• B)customer-mix budget
• C)objective and task budget
• D)bottom-up budget
• E)total consumer budget

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Definitions:

Variable Input

An input in the production process that can be changed in the short run, such as labor and raw materials.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, assuming all other factors remain constant.

Marginal Product

The additional output that is generated by adding one more unit of a specific input, holding all other inputs constant.

Marginal Cost Curve

The curve illustrating the change in total production cost with the addition of one more unit of product, reflecting the principle of increasing costs.