One Reason That Variable Factors of Production Tend to Show

question 25

Multiple Choice

One reason that variable factors of production tend to show diminishing returns in the short run is that:

• A)too much capital equipment is idle.
• B)there are more and more workers using a fixed amount of productive resources.
• C)the firm has become too large to effectively manage workers.
• D)the cost of hiring additional workers increases as firms seek to hire more.

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Definitions:

Service Department Expenses

Costs incurred by support departments within an organization, like HR and maintenance, which do not directly contribute to revenue but are necessary for operations.

Budget Performance Report

A financial report that compares actual financial results to the budgeted amounts for a specific period to assess performance.

Significant Variances

Large or meaningful differences between planned and actual figures in budgeting or accounting, requiring investigation.

Over Budget

Over budget refers to a situation where actual spending exceeds the planned or allocated amount for a particular budget category.