A Budget Helps To

question 2

Multiple Choice

A budget helps to:

• A)regulate the operation of an event over a given period of time.
• B)understand hidden expenses.
• C)structure a list of expenses.
• D)divide fairly income and outcome for all tasks.

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Definitions:

Fixed Costs

Costs that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance premiums.

Marginal Costs

Marginal costs represent the change in total production cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one additional unit of a good.

Marginal Productivity

Marginal productivity is the additional output that is produced by using one more unit of a certain input, assuming that all other inputs remain constant.

Total Output

The complete quantity of goods or services produced by a company, sector, or economy within a given period.