The Law of Increasing Additional Cost Is Due to

question 126

Multiple Choice

The law of increasing additional cost is due to

• A)scarcity.
• B)inefficient use of technology.
• C)the fact that resources are not perfectly adaptable for alternative uses.
• D)the fact that there are always alternatives and it is costly to figure out which alternative is best.

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Definitions:

Owners' Equity

The portion of a company's assets that belongs to its owners or shareholders, representing their residual interest.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, ultimately providing a view of the company’s profitability.

Chief Financial Officer

A high-ranking executive responsible for managing the financial actions of a company, including financial planning, record-keeping, and reporting.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific time, showing assets, liabilities, and equity.