You Probably Approve of the Operation of Wal-Mart If You

question 24

Multiple Choice

You probably approve of the operation of Wal-Mart if you support

• A)state capitalism.
• B)pure capitalism.
• C)pure socialism.
• D)businesses that are locally owned and family operated.

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Definitions:

Variable Cost

Expenses that vary in direct proportion to changes in the level of production or sales volume.

Fixed Cost

Costs that remain constant in total amount with changes in the volume of activity, such as rent and salaries.

Mixed Cost

Expenses that have both fixed and variable components, changing with the level of activity but also containing a static element.

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the amount of sales that can decline before a business incurs a loss.