Given the American Economy's Basic Objective of Meeting Consumers' Needs

question 134

Multiple Choice

Given the American economy's basic objective of meeting consumers' needs as they-the consumers-see them,it is sensible to evaluate our macro-marketing system in terms of

• A)the level of consumer satisfaction.
• B)how efficiently our resources are used.
• C)the value of the inputs to the system.
• D)our standard of living,as measured by GNI.
• E)total business profits.

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Definitions:

Absorption Costing

A financial approach that encompasses all production expenses - such as direct materials, direct labor, along with variable and fixed overheads - within the price of a product.

Variable Costing

An accounting method that includes only variable costs—costs that change with production volume—in product costing and decision making.

Common Fixed Expenses

Expenses that do not vary with the level of production or sales, and are shared across different segments or products of a company.

Total Fixed Expenses

The cumulative amount of all expenses that do not change with the level of production or sales within a certain range and period.