If a Business Needs a Particular Good or Service and Decides

question 121

Multiple Choice

If a business needs a particular good or service and decides to look among its own customers for a provider of that good or service,what is the business doing?

• A) acting unethically
• B) practising reciprocity
• C) opening itself up to prosecution for illegal activities
• D) working to create purchase arbitration

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Definitions:

Variable Costs

Expenses that change in proportion to the production or sales figures.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and labor expenses.

Total Fixed Costs

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

Total Costs

sum up all the costs incurred by a business in the production of goods or services, including both fixed and variable costs.