A Business Incurs a ________ If Its Costs and Expenses

question 285

Multiple Choice

A business incurs a ________ if its costs and expenses exceed its revenues.

• A) loss
• B) liability
• C) debit
• D) dividend

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Definitions:

Production Level

Refers to the amount of goods or services produced by a company or industry over a specific time period.

Variable Costs

Expenses that fluctuate in direct proportion to production levels or output, including labor and materials.

Short-run Supply Curve

A graphical representation of the quantity of goods a firm is willing and able to supply to the market at different prices, over a short period where at least one input is fixed.

Marginal Cost

The financial commitment needed for the creation of an additional unit of a product or service.