What Is Usually the Consequence of Trying to Adjust Cost

question 179

Multiple Choice

What is usually the consequence of trying to adjust cost of living adjustments with social security?

• A) A firestorm of political protest forms when cuts are suggested.
• B) A firestorm of political protest forms when increases are suggested.
• C) Cuts are difficult, given the negative impact they will have on the federal budget.
• D) Adjustments typically result in little attention by interest groups and presidents.
• E) Young voters typically mobilize to support reduced adjustment rates.

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Definitions:

Break-Even

The point at which total costs and total revenues are equal, meaning there is no net loss or gain.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Variable Manufacturing Costs

Costs that fluctuate directly with the level of production output, such as the costs of raw materials and direct labor.

Selling Price

The amount a company charges for its product or service, which can impact demand, revenue, and profitability.