Organisations Need to Understand How Costs Behave So They Can

question 43

True/False

Organisations need to understand how costs behave so they can predict the changes in costs that occur as a result of decisions made about production, sales and services.

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Definitions:

Special-Interest Effect

The impact or influence of special interest groups on policy-making processes, often aimed at obtaining favorable regulations or benefits for their members.

Economic Losses

The reduction in economic value due to factors such as poor investment decisions, natural disasters, or inadequate demand for goods and services.

Economic Gains

Increases in wealth or resources, often measured in terms of profit or improved well-being resulting from economic activities.

Earmark

Funds that are set aside by a legislative body for specific purposes.