Managers Can Use the NAICS Data To

question 110

Multiple Choice

Managers can use the NAICS data to:

• A) create a more focused mission statement
• B) eliminate risk
• C) classify consumer behavior
• D) identify potential new customers
• E) determine purchase motives

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Definitions:

Cost Formula Equation

A mathematical equation used to predict costs, considering both fixed and variable components.

Fixed Component

The portion of a cost or expense that remains constant regardless of changes in the volume of goods or services produced or sold.

Dependent Variable

A variable that responds to some causal factor; total cost is the dependent variable, as represented by the letter Y, in the equation Y = a + bX.

Fixed Cost

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