If Aggregate Demand Falls Short of Current Output,business Firms Will

question 119

Multiple Choice

If aggregate demand falls short of current output,business firms will ________ production to ________ inventories.

• A)cut;keep from accumulating
• B)expand;keep from accumulating
• C)cut;build up
• D)expand;build up

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Definitions:

Variable Cost

Variable cost is an expense that changes in proportion to production output or sales volume.

Managerial Accounting

Managerial accounting involves the provision of financial and non-financial information to an organization's management team to assist in decision-making and strategy planning.

Setting Goals

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives that guide individuals or organizations.

Managerial Accounting Reports

Internal financial reports that provide managers with the necessary information to make informed business decisions, typically focused on future profitability and efficiency.