The Short Run Is Best Defined As

question 24

Multiple Choice

The short run is best defined as:

• A)one year or less.
• B)a period of time sufficiently short that all factors of production are variable.
• C)the period of time between quarterly accounting reports.
• D)a period of time sufficiently short that at least one factor of production is fixed.

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Definitions:

Estimated Life

The expected period over which an asset will be useful in the operations of a business.

Units-Of-Output Method

A depreciation technique that allocates the cost of an asset based on its usage, work output, or units produced.

Depreciable Cost

The cost of a fixed asset minus its salvage value, over which the cost is allocated across the useful life of the asset.

Actual Yearly Output

The total quantity of products or services produced by a company within a specific year.