An Item That Is Purchased to Increase Businesses' Productive Resources

question 136

Multiple Choice

An item that is purchased to increase businesses' productive resources is

• A) an export.
• B) a government good.
• C) a capital good.
• D) a consumption good.
• E) a productive good.

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Definitions:

High-low Method

An approach used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Electricity Cost

The amount charged for the consumption of electric power, which can vary based on factors like usage, time of use, and geographical location.

Machine Hours

A measure of production time, calculated by counting the number of hours machines are operating.

Semivariable Cost

Expenses that have both fixed and variable components, changing in total with activity level but not proportionally.