Refer to the Following

question 7

Multiple Choice

Refer to the following:

"Ford built 18 vehicles per auto employee in North America last year, while GM could only manage 12." (The Wall Street Journal)

-In comparison with GM, Ford had

• A) higher average variable cost.
• B) lower average variable cost.
• C) higher total variable cost.
• D) both a and c
• E) none of the above

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Definitions:

Debt Repayment

The act of paying back money previously borrowed from a lender, typically according to a prearranged payment schedule.

Amortization

The systematic and rational allocation of the acquisition cost of an intangible asset over its useful life

Cash Inflow

Money coming into a business or an account, from various sources like sales, financing, or investment returns.