Which of the Following Can a Firm Do to Be

question 175

Multiple Choice

Which of the following can a firm do to be more sustainable?

• A) Produce light bulbs with raw materials that consume more energy
• B) Manufacture textiles using chrome and ammonium solutions
• C) Use ink-free recycled paperboard for making boxes
• D) Fly the national sales force to a meeting instead of using teleconferencing technology
• E) Replace electric delivery vehicles with gas-powered ones

---

Definitions:

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, often used to provide more realistic performance comparisons.

Variable Costs

Variable Costs are expenses that vary in direct proportion to changes in the levels of an activity or production volume, such as materials and labor costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Direct Materials Price Variance

The difference between the actual cost and standard cost of direct materials used in production, indicating how effectively a company is purchasing its raw materials.