Expenses Originate from

question 110

Multiple Choice

Expenses originate from

• A)using an asset or recognizing liabilities.
• B)incurring liabilities or providing services to customers.
• C)collecting cash from customers.
• D)paying off liabilities.

Learn the significance of certifications in achieving competitive advantage.

Realize the importance of value chain activities in an organization.

Gain insight into quality control and its impact on operations management.

Understand the distinction between variables and constants in economic analysis.

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Definitions:

Increasing Opportunity Costs

The concept that as the production of one good is increased, the opportunity cost of producing additional units rises.

Production Possibilities Curve

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Bowed Outward

Refers to the shape of a production possibility frontier that shows increasing opportunity costs as production shifts between two goods.

Absolute Advantage

A situation in which a nation, as the result of its previous experience and/or natural endowments, can produce more of a good (with the same amount of resources) than another nation can.