When 5,000 Units Are Produced,variable Costs Are $6 Per Unit

question 101

Multiple Choice

When 5,000 units are produced,variable costs are $6 per unit.Therefore,when 20,000 units are produced:

• A)variable costs will total $120,000.
• B)variable costs will total $60,000.
• C)variable unit costs will increase to $12 per unit.
• D)variable unit costs will decrease to $3 per unit.
• E)variable costs will decrease to $2 per unit.

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Definitions:

Quantitative

Pertaining to methods or data that is numerical and can be measured and analyzed statistically for facts and figures.

Econometric Models

Econometric Models are statistical models used in economics to test hypotheses or forecast future trends by using data and mathematical theories.

Forecasting Method Categories

Different approaches or techniques used to predict future aspects of business operations, such as sales, demand, and inventory requirements.

Human Resource Forecasting

The process of estimating an organization’s future human resource needs and determining how to meet those needs.