Cost Drivers Are

question 73

Multiple Choice

Cost drivers are:

• A)Factors that determine a firm's unit costs
• B)Factors that determine a firm's cost position
• C)Factors that are neutral for a firm's costs
• D)Factors that explain costs in manufacturing industry

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Definitions:

Real Rate of Return

The rate of return on an investment after adjusting for inflation, showing the actual increase in purchasing power.

Real Rate

The interest rate adjusted for inflation, representing the real cost of borrowing or the real yield on an investment.

Expected Inflation

The rate at which it is forecasted that the general level of prices for goods and services will rise over a period of time.

Nominal Rate

The interest rate before adjustments for inflation, indicating the gross rate of return on an investment.