Which Concept Answers the Following Question: 'If Budgeted Revenues Are

question 17

Multiple Choice

Which concept answers the following question: 'If budgeted revenues are above break-even and decline, how far can they fall before the break-even point is reached?

• A)Contribution margin
• B)Relevant range of operations
• C)Operating leverage
• D)Margin of safety

---

Definitions:

Underemployment

describes a situation where workers are employed in capacities below their skill level or work fewer hours than they would prefer.

Opportunity Cost

The cost of what is forgone in order to pursue a certain action or decision.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's or industry's output expands.

Factor Suitability

A principle in economics that factors of production such as land, labor, and capital are more productive when appropriately matched with their specific uses or industries.