Firms ________ Their ________ Costs in the Short Run

question 38

Multiple Choice

Firms ________ their ________ costs in the short run.

• A) can change; fixed
• B) cannot change; total
• C) can change; overhead
• D) can change; variable

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Net Income

The residual income of a company once every expense and tax payment has been extracted from revenue.

Amortization Expense

The portion of the cost of an intangible asset that is allocated as an expense over its useful life.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded through the normal accounting process.