Which of the Following Factors Was Primarily Responsible for the Excess

question 91

Multiple Choice

Which of the following factors was primarily responsible for the excess in production capacity in the United States after World War II?

• A) The United States government raised the tariffs on most imports by 60%.
• B) Many firms from other nations shifted their production facilities to the United States.
• C) Domestic demand was at a historic low and resulted in excess capacity.
• D) The returning military after World War II increased the labor supply in the United States.
• E) The implementation of the Marshall Plan dampened the overseas demand.

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Definitions:

Controllable Margin

The portion of profit or margin that can be directly influenced by management decisions and actions.

Operating Assets

Assets used in the daily operations of a business to generate revenue, including cash, inventory, and equipment.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.

Flexible Budgets

Financial plans that can be adjusted or modified to take into account changes in volume of operations or activity levels, allowing for more accurate budgeting.