Describe in Detail the Major Factors to Determine When Performing

question 78

Essay

Describe in detail the major factors to determine when performing a strategic systems analysis.

Distinguish between types of costs (fixed, variable, marginal).

Understand the role of total revenue in short-run operational decisions.

Grasp the importance of marginal cost in relation to AVC and ATC curves.

Learn the effects of output changes on cost curves and firm decisions.

---

Definitions:

Capital Intensity Ratio

A measure of how much capital is used in production compared to other factors like labor; high ratios suggest a reliance on physical assets and machinery.

Capacity

refers to the maximum level of output that a company can sustain to produce goods or services under normal working conditions.

Retention Ratio

This metric indicates the percentage of net income a firm retains to reinvest in its business rather than distributing to shareholders as dividends.

Dividend Payout Ratio

The fraction of earnings a company pays out to its shareholders in the form of dividends.