What Type of Economic Base Is Preferred by Most Retailers

question 7

Multiple Choice

What type of economic base is preferred by most retailers?

• A) upper-income economic base
• B) service-oriented economic base
• C) single-industry economic base
• D) diversified economic base

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Definitions:

Avoidable Costs

Costs that can be eliminated if a particular decision is made, such as discontinuing a product line.

Irrelevant Costs

Costs that will not be affected by a decision and therefore should not be considered when making that decision.

Asset

Resources owned or controlled by a business that are expected to provide future economic benefits.

Original Cost

The initial price paid or cost of acquisition of an asset, before any depreciation, amortization, or impairment costs are deducted.