Which of the Following Statements Is NOT True About the Short

question 302

Multiple Choice

Which of the following statements is NOT true about the short run and the long run?

• A) The short run for a firm is today while the long run is next week.
• B) These terms apply to the planning decisions of firms.
• C) The firm is always operating in the short run.
• D) In the short run, the firm can change the amount of variable inputs.

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Definitions:

Monthly Ending Inventories

The quantities and valuation of goods available for sale or use, recorded at the end of each month.

Budgeted Production

The estimated amount of goods that a company plans to produce in a certain period, used in planning and cost control.

Merchandise Purchases

The total cost of goods bought for resale during a specific accounting period, excluding any discounts or allowances.

Cash Disbursements

The total payments made by a business for various purposes, including expenses, purchases, and debt repayment.