The Most Desirable Rate of Output Is the One That

question 96

Multiple Choice

The most desirable rate of output is the one that:

• A) Minimizes total costs.
• B) Maximizes total profit.
• C) Minimizes marginal costs.
• D) Maximizes total revenue.

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Definitions:

Year-End Costs

Expenses or costs incurred by a business at the end of the fiscal year; these may include adjustments, accruals, and prep for financial reporting.

Inventory Cost Flow

An accounting method that determines the value of sold inventory and ending inventory, can be FIFO, LIFO, or Average Cost.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue. It represents the company's bottom line.