Match Each Term with Its Correct Definition

question 73

Multiple Choice

Match each term with its correct definition.
-The Board of Directors is shown at the top of this diagram.

• A)Organizational chart
• B)Financial accounting
• C)Line position
• D)Managerial accounting
• E)Planning
• F)Directing
• G)Controlling

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Definitions:

Firm

A business organization, such as a corporation or partnership, which sells goods or services in exchange for money.

AFC

Average Fixed Cost, the fixed costs of production divided by the quantity of output produced.

Variable Costs

Costs that change in proportion to the good or service that a business produces, such as materials and labor.

Output

The sum of all products or services generated by a business or economic system.