After Comparing Budgets with the Actual Results,the Feedback Allows Managers

question 179

True/False

After comparing budgets with the actual results,the feedback allows managers to determine what,if any,corrective action should be taken.

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Definitions:

Capital

Resources made and used to produce goods and services, including tools, equipment, machinery, and buildings.

Labor

The application of both mental and physical human capacities for the generation of goods and services.

Marginal Physical Product

The additional quantity of output that is produced by using one more unit of a given input, assuming all other inputs remain constant.

Total Revenue Product

The total revenue generated by a firm from selling the output produced by an additional unit of a factor of production.