In a Small Construction Firm, Another Crew Supervisor Is Added

question 56

Multiple Choice

In a small construction firm, another crew supervisor is added for every 10 workers employed.This is an example of a _____.

• A)purely variable cost
• B)discretionary fixed cost
• C)step cost
• D)mixed cost

Grasp the principles of effective budgeting, including participatory development and continuous revision.

Recognize the benefits of budgeting in planning, coordination, and performance evaluation.

Understand the specific roles and responsibilities in the budgeting process.

Understand the concept of budgeting and its importance in financial planning.

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Definitions:

Total Revenue

The total amount of money generated by a firm or entity from its business activities, calculated by multiplying the price by the quantity sold.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Profitable

Generating revenue that exceeds the expenses, costs, and taxes needed to sustain the activity.

Average Total Cost

The cost per unit of output, calculated by dividing the overall production costs by the number of units produced.