The __________ Budget Uses the Expected Per Unit Costs Found

question 238

Multiple Choice

The __________ budget uses the expected per unit costs found in the standard cost sheet,so the only difference to the static budget is that it is based on the actual sales volume.

• A)cost
• B)flexible
• C)direct materials
• D)direct labour

Assess the minimum price a firm would need to charge to cover its average total cost in the long run.

Distinguish between price searchers and price takers.

Evaluate the effect of market entry or exit on market supply, price and firm profitability.

Understand the relationship between market demand, firm entry/exit, and the supply curve in different cost industries.

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Definitions:

Economic Potential

The capacity of a product, service, or market to generate significant profits or economic benefits, assessed through factors like market size, demand, and scalability.

Global Market

The international exchange of goods and services that transcends national boundaries, encompassing worldwide economic activities.

Economic Measures

Quantitative indicators used to evaluate the economic performance of a country, region, or sector, such as GDP, unemployment rates, and inflation.

Local Fulfillment

The process of storing and distributing products within close proximity to the end consumer to ensure faster delivery.