An Appropriate Activity Index for a College or University for Budgeting

question 24

Multiple Choice

An appropriate activity index for a college or university for budgeting faculty positions would be the

• A) faculty hours worked.
• B) number of administrators.
• C) credit hours taught by a department.
• D) number of days in the school term.

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Definitions:

Factor Prices

The prices paid for the use of factors of production such as land, labor, and capital, which influence cost of production and economic decisions.

Output Increases

A situation where the production volume of goods or services in a company, industry, or economy rises, often due to higher demand, improved efficiency, or technological advancements.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the per-unit cost of production.

Total Cost

The aggregation of all costs, both fixed and variable, incurred by a business in producing a specific quantity of goods or services.