The Short-Run Refers To

question 77

Multiple Choice

The short-run refers to:

• A)a time period of two years or less.
• B)the time period in which the usage of all inputs are held constant.
• C)the time period in which it is too costly to change the usage of at least one input.
• D)the time period in which the usage of all inputs can be changed.

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Definitions:

Direct

Expenses or costs that can be directly traced to a specific cost object, like a product, department, or project.

Cost Object

Anything for which cost data are desired. Examples of cost objects are products, customers, geographic regions, and parts of the organization such as departments or divisions.

Period Costs

Costs that are not directly tied to the production process and are expensed in the period in which they occur.

Manufacturing Overhead

Expenses related to the manufacturing process that cannot be directly tied back to the production of specific goods, such as factory maintenance and rent.