The Comparison of Differences Between Actual and Planned Results

question 169

Multiple Choice

The comparison of differences between actual and planned results

• A) is done by the external auditors.
• B) appears on the company's external financial statements.
• C) is usually done orally in departmental meetings.
• D) appears on periodic budget reports.

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Definitions:

Marginal Product

The additional output that an additional unit of input (such as labor or capital) will produce, holding all other inputs constant.

Returns To Scale

The change in output resulting from a proportional change in all input factors where all inputs are increased or decreased by the same factor.

Marginal Products

This refers to the additional output that results from using an extra unit of a particular input, assuming other inputs are constant in the production process.

Production Function

A mathematical expression that describes the relationship between input factors and the output of goods or services.