Unit 2 Cost and Profit

An example of a cost of goods or services sold for a house painting company would be

• Flyers to promote the company

• Fuel for the van

• Paint

• A van to travel to people's homes

If your company has a large production-related task, such as assembling an airplane, what strategy could help you increase productivity?

• Decreasing your use of technology

• Raising prices

• Generalization

• Division of labor

For a company that sells greeting cards online and mails the printed cards to customers, a fixed cost would be

• The paper and glue to make the cards

• Hourly workers who assemble and ship the cards

• Packaging and shipping costs

• A paper cutting machine

A way to increase possession utility for a refrigerator could be by

• Providing a delivery service

• Expanding the store hours

• Making a Web site with information about the product

• Creating brochures about the product

The process when your company buys a car, and its value goes down over time is known as

• Leasing

• Depreciation

• A unit of sale

• Interest

The law of diminishing returns is often used to analyze the ideal amount of which factor of production?

• Capital

• Land

• Labor

• Entrepreneurship

The amount of money a company has left over once all expenses have been subtracted is known as

• Net profit

• Revenue

• Gross profit

• Cost of goods sold

A type of utility that can only be added by the maker of the product is known as

• Time utility

• Place utility

• Form utility

• Possession utility

The common measurement that can describe the hours of labor or the number of workers for a company is known as

• Division of labor

• Use of technology

• Diminishing returns

• Productivity

The type of goods utility in which a computer game can be purchased and played right away is known as

• Time

• Value

• Information

• Form