The Utility of a Good or Service

question 312

Multiple Choice

The utility of a good or service

• A)is synonymous with usefulness.
• B)is the satisfaction or pleasure one gets from consuming it.
• C)is easy to quantify.
• D)rarely varies from person to person.

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Definitions:

Business Segments

Different parts of a company that operate in distinct markets or industries, often reported separately in financial statements.

Common Fixed Expenses

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, shared across different parts of a business.

Break-Even Sales

The level of sales at which total revenues equal total costs, resulting in neither profit nor loss for the business.

Common Fixed Expenses

Common fixed expenses are costs that do not fluctuate with the volume of production or sales, shared by different segments or products of a business, like rent and insurance.