Specialization Increases Output and Decreases Costs By

question 24

Multiple Choice

Specialization increases output and decreases costs by:

• A)enabling labor to develop speed and dexterity
• B) reducing setup time for each part
• C) allowing a company to make a wide variety of different products
• D) a and b above only
• E)none of the above

Recognize different sources of finance for businesses, including debt and equity options.

Understand the attitudes and personal interests that motivate entrepreneurs.

Distinguish between various backgrounds and experiences of entrepreneurs.

Understand the structure and importance of business plans.

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Definitions:

Perpetual Inventory System

A method of continuously tracking inventory levels, costs, and sales in real time, reducing the need for physical inventories.

Purchases Account

An account used in an accounting system to record the purchase of goods or services that a business intends to resell.

FOB Destination

In this shipping term, the seller retains the risk of loss until the goods reach the buyer's location.

FOB Shipping Point

This refers to a shipping term where the buyer assumes responsibility for the goods the moment they leave the seller’s premises.