Desire to Invest Funds Is a Primary Reason Why fiRms

question 222

True/False

Desire to invest funds is a primary reason why firms have cash surpluses.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Direct Labor

The wages and salaries for those employees directly involved in the manufacturing process of a company's products.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Per Unit Basis

A method of expressing costs, pricing, or other financial measures on a per single unit of product or service basis.