INSTRUCTIONS: Choose the Word or Phrase in [ ] That

question 83

Short Answer

INSTRUCTIONS: Choose the word or phrase in [ ] that will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
If your insurance policy promises to pay death benefits only if you die during a specified time, you have [ term | whole ] life insurance.

---

Definitions:

Spreading the Overhead

The practice of distributing fixed costs over a variety of products, projects, or business units to ensure efficiency and reduce the overall cost per unit.

Economies of Scale

The cost advantage that arises with increased output of a product, as the fixed costs are spread over more units of production.

Diseconomies of Scale

This occurs when a company grows so large that the costs per unit increase.

Levels of Output

Levels of output refer to the quantity of goods or services produced by a firm or industry over a specific period.