The First Step in Estimating or Predicting Costs as a Function

question 78

Short Answer

The first step in estimating or predicting costs as a function of appropriate cost drivers

Comprehend the concept of economic profit and loss and its implications on market entry and exit.

Identify factors leading to shifts in industry supply curves.

Grasp the concept of efficient markets and how investment capital flows.

Understand the impact of external economies of scale on industries.

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Definitions:

Express Warranty

A clear, explicit promise made by a seller about the quality or functionality of a product.

Implied Warranty

A legal assumption that a product will meet the standards of acceptability and usability without explicit statement by the seller.

Res Ipsa Loquitur

A doctrine that allows a judge or jury to infer that, more likely than not, the defendant’s negligence was the cause of the plaintiff’s harm even though there is no direct evidence of the defendant’s lack of due care.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.