A Firm Cannot Control All of the Factors That Allow

question 73

Multiple Choice

A firm cannot control all of the factors that allow it to make economic profits.Which of the following is an example of an uncontrollable factor?

• A)product differentiation
• B)input prices
• C)producing at a lower average total cost than competing firms
• D)hiring competent managers

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production of a specific product or service.

Work in Process

The total value of materials and labor for products that are partially completed but not yet ready for sale.

Materials

Raw inputs or basic substances used in the manufacturing or production process to create finished goods.

Materials Requisition

The document or electronic request used within a company to authorize the withdrawal of materials from inventory for use in the production process or other internal use.