Which of the Following Are Financial Measures of Performance

question 81

Multiple Choice

Which of the following are financial measures of performance?
1. Controllable margin
2. Product quality
3. Labor productivity

• A) 1
• B) 2
• C) 3
• D) 1 and 3

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, an essential concept for understanding optimal production levels and pricing strategies.

Monopolistically Competitive

Pertaining to a market structure where many firms sell products that are differentiated from one another but can act as substitutes, thereby creating competition.

Average Total Cost

The aggregate expense of manufacturing (sum of constant and fluctuating costs) spread over the entire volume of goods produced.