One Reason Why Accounting Is Important to a Small Business

question 57

True/False

One reason why accounting is important to a small business is that it shows how much your business is worth.

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Definitions:

Output

The aggregate sum of products or services generated by a business, sector, or economic system.

Cost

The value of everything a company gives up to produce goods or services, including materials, labor, and overhead expenses.

Units

Standard measures or quantities used to specify or quantify an amount of something.

Marginal Product

The additional output generated by expanding inputs by one additional unit, while holding all other inputs constant.