Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the primary aim of the Principle of Cost Minimization?
What is the primary aim of the Principle of Cost Minimization?
- To minimize the variety of goods and services offered
- To achieve the most cost-effective way of delivering goods and services to the required level of quality (correct)
- To maximize production output at any cost
- To prioritize quality over cost in delivering goods and services
What does the Cost Approach in production planning start with?
What does the Cost Approach in production planning start with?
- The market demand for goods and services
- The expected profit margin
- The budget allocated for production
- The goods and services the entity intends to provide (correct)
What economic principle does 'Cost to Replace' follow?
What economic principle does 'Cost to Replace' follow?
- The cost of an asset is always higher than the market value
- A buyer will pay no more for an asset than the cost to obtain an asset of equal characteristics (correct)
- The cost of an asset is determined by its historical value
- The value of an asset is determined by the seller's asking price
In the Resource Approach, what may a firm be more proficient or expert in?
In the Resource Approach, what may a firm be more proficient or expert in?
Signup and view all the answers
What is the main decision-making factor for providing a good or service according to the Cost Approach?
What is the main decision-making factor for providing a good or service according to the Cost Approach?
Signup and view all the answers
