What is meant by spreading overhead?

What will be an ideal response?


Spreading overhead is the process of dividing total fixed costs by more units of output. Average fixed cost declines as quantity rises.

Economics

You might also like to view...

Orders can lose accuracy:

a. if they are too complicated. b. as they are transmitted within the organization. c. in organizations where decision-making is decentralized. d. unless they are given to the right recipient.

Economics

A landlord will supply his or her land for rental only if in equilibrium

A. he or she receives economic rent on the land. B. he or she is paid at least the opportunity cost of using the land himself or herself. C. his or her land is marginal. D. his or her rate of return on his or her investment in the land is zero.

Economics

An increase in nominal GDP (with inflexible prices) results in:

a. an increase in the nominal rate of interest. b. an increase in the U.S. dollar exchange rate. c. a decrease in the nominal rate of interest. d. increased price and wage flexibility.

Economics

John has $4000 in savings to buy an engagement ring for his girlfriend even though he has no plans to propose in the near future. When his transmission needs to be replaced in his car, John charges the $2000 worth of auto repair. John's decision is an example of:

A. over consumerism. B. people recognizing that money is fungible. C. people making false distinctions about their money. D. everyday expenses being easier to charge than big purchases.

Economics