Refer to Figure 8

question 65

Multiple Choice

Refer to Figure 8.2.Which graph illustrates an output expansion path with a constant capital-labor ratio?

• A) A
• B) B
• C) C
• D) D

---

Definitions:

Administrative Expenses

Costs associated with the general administration of a business, including office supplies and salaries of non-production staff.

Planning Budget

A forecast of revenue, expenses, and cash flow used by organizations to plan for the upcoming period.

Occupancy Expenses

Costs related to occupying a physical space, such as rent, utilities, and property taxes.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level, allowing better analysis and control over performance.