The Long Run for a Business Is a Period of Time

question 234

Multiple Choice

The long run for a business is a period of time

• A) longer than a year.
• B) when most inputs are variable.
• C) when all inputs can change.
• D) when labor is the only input used by the business.

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Definitions:

Inventory System

A system to keep track of the items available for sale and those sold, often utilizing software for management and efficiency.

Estimating Inventories

The process of approximating the quantity and value of inventory a business has on hand.

Gross Profit Method

A technique to estimate inventory cost by using the gross profit margin, often used when physical inventory counts are impractical.

Financial Statement Effects

The impact of transactions on the financial statements, affecting the balance sheet, income statement, and cash flow statement.