Which of the Following Is the Best Example of a Convenience

question 82

Multiple Choice

Which of the following is the best example of a convenience product?

• A) a silk scarf
• B) a subscription to a magazine
• C) a gallon of milk
• D) a lawn mower
• E) a CD player

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Definitions:

General Transfer-Prizing Rule

A principle used to determine the price at which goods and services should be transferred between departments within the same organization.

Opportunity Cost

The expense incurred by not choosing the second-best option available during a decision-making process.

Controllable Cost

Expenses that can be directly managed or influenced by a decision-maker within a specific time frame.

Line Authority

The power given to managers to make decisions and issue commands within their scope of responsibility, and to expect those commands to be followed by subordinate employees.