Which of the Following Factors Would Not Shift the Cost

question 65

Multiple Choice

Which of the following factors would not shift the cost curves of an automobile company upward?

• A) a regulation requiring all automobiles be equipped with improved safety equipment
• B) an increase in the price of steel used to make automobiles
• C) an increase in the property tax on buildings and equipment used by the automobile company
• D) An employee develops a new method of installing doors on the cars that requires half as many workers as before.

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Definitions:

Net Operating Income

An indicator of a company's profitability calculated by subtracting operating expenses from operating revenues, excluding taxes and interest.

Common Fixed Expenses

Overhead costs that do not fluctuate with the level of production or sales, such as rent, salaries of administrative staff, and insurance.

Net Operating Income

The total profit of a company after operating expenses are deducted from operating revenues, but before deducting taxes and interest.

Salaried Estimator

A professional responsible for projecting costs and expenses, who is compensated with a fixed annual salary rather than hourly wages.