Average Product Is Not as Reliable an Indicator of How

question 19

Multiple Choice

Average product is not as reliable an indicator of how a business is doing as it used to be because of

• A) variable expenses.
• B) fixed expenses.
• C) outsourcing labor.
• D) outsourcing profit.

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Definitions:

Kilowatt-Hour

A unit of energy equivalent to one kilowatt of power expended for one hour, used to measure electricity consumption.

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property owned by individuals or businesses.

Fixed Cost

A cost that does not change with an increase or decrease in the quantity of goods or services produced or sold.

Accounting Salaries

The wages or salaries paid to employees working in the accounting department, reflecting the cost associated with managing financial records and reports.