In Simple Terms,______________________________ Include Production and Consumption

question 66

Short Answer

In simple terms,______________________________ include production and consumption.

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Definitions:

Sales Price

The actual amount for which a product or service is sold in the market.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Fixed Costs

Expenses that do not change with the level of production or sales.

Depreciation Tax Shield

The Depreciation Tax Shield refers to the reduction in income tax a company achieves through deducting depreciation expenses, thus lowering its taxable income.