Question

As the business grows:

Answer 1

Answer:

salaries and wages will go up

Explanation:

As a company grows, total salaries and wages will go up basically because more people will work in the company. Total expenses are generally not important by themselves, they must be compared to other factors to determine if the company's growth is healthy or not.

For example, as the company grows, all of its expenses will increase, selling and administrative expenses, production costs, etc. Here is where average costs or sales ratios are important.

Average total costs (ATC) per unit are important since even though total costs might increase, total output should also increase, and hopefully in a higher proportion. If the company is being more productive and efficient its ATC should decrease.

Answer 2

Answer:

As the business grows: salaries and wages will go up as output increases

Explanation:

If a business tends to grow the salaries of the workers will go up and wages will increase too because now there s more output compared to when the business started and you will have to probably hire more workers or pay for overtime.