The Goal of the Business Firm Is Maximization of ____

question 130

Multiple Choice

The goal of the business firm is maximization of ____, and the goal of the consumer is maximization of ____.

• A)total sales; income
• B)total profit; utility
• C)total output; utility
• D)total sales; utility

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Definitions:

Gross Profit

The distinction between sales income and the expense of goods sold prior to subtracting overhead costs, wages, taxes, and interest charges.

Periodic

Relating to or occurring at regular intervals; in accounting, it may refer to methods or adjustments made at regular intervals, such as the Periodic Inventory Method.

Inventory Method

An accounting approach used to value inventory, including procedures like First-In, First-Out (FIFO) or Last-In, First-Out (LIFO).

Perpetual

An inventory system where transactions are recorded in real-time, immediately affecting the inventory account, providing an ongoing record of inventory on hand.