The Greater the Variability of Costs, the Greater the Business

question 42

Multiple Choice

The greater the variability of costs, the greater the business risk of the firm.This is reflected in the:

• A)selling price
• B)cost of inputs used to produce a firm's output
• C)sales volume
• D)existence of market power

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Definitions:

SCIS

Supply Chain Information Systems; technology and software tools designed to enhance visibility, efficiency, and management of the supply chain from procurement to delivery.

Information Technology

The use of computers, software, and networks to store, process, and communicate information digitally for business operations.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness.

Reliance

Dependence or trust placed in a system, organization, or another person, often in a context where mutual dependencies are critical.