Variable Factors of Production Are the Inputs That a Manager

question 150

Multiple Choice

Variable factors of production are the inputs that a manager:

• A) may adjust in order to alter sales.
• B) may adjust in order to alter production.
• C) cannot adjust in the short run.
• D) cannot adjust in the long run.

Comprehend the role of fixed and variable costs in budgeting and financial performance evaluation.

Understand the process and importance of comparing actual costs and revenues to budgeted amounts.

Grasp the significance of activity levels in the management of costs and the preparation of flexible budgets.

Interpret the implications of variances on material cost and efficiency.