Long-Run Planning Involves Which One of the Following Processes

question 90

Multiple Choice

Long-run planning involves which one of the following processes?

• A) Capital budgeting
• B) Production prioritizing
• C) Operational budgeting
• D) Variance comparison

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

Absolute Advantage

Refers to the capability of an entity to produce a good or service more efficiently than its competitors using the same amount of resources.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Leisure Time

Time spent not working and free from domestic or professional duties, allowing for rest, recreation, or personal activities.