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The Function of Accounting and Finance in a Business That

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The function of accounting and finance in a business that is implementing a differentiation strategy is to control the flow of funds without discouraging the creativity needed to constantly develop new products and services to meet customer needs.


Definitions:

Marginal Revenue Product

The extra income earned by utilizing an additional unit of a production resource, while keeping all other resources unchanged.

Variable Input

Resources or inputs in production that change in quantity depending on the level of output, such as raw materials and direct labor hours.

Market Wage

The average or prevailing wage rate for a specific job in a particular market or industry.

Surplus

The condition that occurs when the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to a decrease in prices.

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