Recessions and Financial Crises Have Led to Layoffs, Reduced Wages

question 69

Multiple Choice

Recessions and financial crises have led to layoffs, reduced wages, unemployment, bankruptcy, and labor shortages. These are examples of which challenge/opportunity for organizations?

• A) innovation and change
• B) sustainability
• C) economic factors
• D) customer service

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Definitions:

Fixed Cost

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

Profit

The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services.

Direct Materials Cost

The expense associated with raw materials directly incorporated into a finished product.

Break-even Point

Break-even Point is the financial analysis term that indicates when total costs and total revenues are exactly equal, resulting in neither profit nor loss.