The E-Factor Relates to the _____ Aspect of Running a Business

question 30

Multiple Choice

The E-factor relates to the _____ aspect of running a business.

• A) manufacturing
• B) performance
• C) economic
• D) purchasing

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Definitions:

Fixed Cost

Costs that do not change in total regardless of the level of output or activity in the short term.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a business.

Total Cost

Total cost refers to the aggregate sum of all costs, both fixed and variable, incurred by a business in producing goods or services.