In the Short Term, Which of the Following Costs Would

question 16

Multiple Choice

In the short term, which of the following costs would be classified as uncontrollable?

• A) Raw materials
• B) Stationery expenses
• C) Loan interest
• D) Entertainment expenses

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Definitions:

Mark-Up

The amount added to the cost price of goods to cover overhead and profit; it is the difference between the cost of a good or service and its selling price.

Market Power

The ability of a company or entity to influence the price and output levels in a market.

Elasticity Of Demand

A measure of how much the quantity demanded of a good changes in response to a change in its price.

Mark-Up

A percentage added to the cost price to determine the selling price.