If the Output Rate for a Given Level of Capacity

question 22

Multiple Choice

If the output rate for a given level of capacity is less than the optimum level,then ______.

• A)increasing the output level reduces economies of scale
• B)increasing the output level increases economies of scale
• C)decreasing the output level increases economies of scale
• D)decreasing the output level maintains economies of scale

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Definitions:

Salaries Payable

An account containing the total amount of salary expense that has been incurred by a company but has not yet been paid out to employees.

Employer Payroll Tax Expense

Taxes paid by employers based on the salary and wages of employees, including social security and Medicare taxes in the United States, among others.

Social Security Tax

Social Security Tax is a payroll tax collected by employers and employees in the United States to fund the Social Security program, providing benefits for retirees, disabled individuals, and survivors.

Medicare Tax

A federal tax that funds Medicare, a healthcare program for those age 65 and over, deducted from employee earnings and matched by employers.