THE VIRGINIA DYNASTY 1801 1825
AMERICAN INDUSTRIALIZATION FACTORY SYSTEM AND MARKET REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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their operating costs were small, compared to their fixed costs.
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their fixed costs were small, compared to their operating costs.
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their stock provided a continuous source of income.
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their prices were raised to bring in more money.
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Detailed explanation-1: -Operating costs are the ongoing expenses incurred from the normal day-to-day of running a business. Operating costs include both costs of goods sold (COGS) and other operating expenses-often called selling, general, and administrative (SG&A) expenses.
Detailed explanation-2: -Operating expenses-also known as selling, general and administrative expenses (SG&A)-are the costs of doing business. They include rent and utilities, marketing and advertising, sales and accounting, management and administrative salaries.
Detailed explanation-3: -Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.
Detailed explanation-4: -A sunk cost, sometimes called a retrospective cost, refers to an investment already incurred that can’t be recovered. Examples of sunk costs in business include marketing, research, new software installation or equipment, salaries and benefits, or facilities expenses.