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In What Area Does General Motors Earn Its Highest Return

question 69

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In what area does General Motors earn its highest return on capital?


Definitions:

Units

A measure of quantity, often used in production and inventory to describe the number of individual items.

Step-Variable Cost

Costs that change in identifiable steps with changes in activity, increasing with each step rather than continuously.

Fixed Cost

Costs that do not vary with the level of production or sales volume, such as rent, salaries, and insurance.

Mixed Cost

A cost that contains both variable and fixed cost components, changing in total with levels of activity but not proportionately.

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