The Marginal Benefit of a Good or Service

question 31

Multiple Choice

The marginal benefit of a good or service

• A) increases as more is consumed.
• B) decreases as more is consumed
• C) remains constant as more is consumed.
• D) decreases as less is consumed.

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Definitions:

Support Department Allocation Rate

A rate used to charge internal support department costs to producing departments based on usage or benefit derived.

Internal Centralized

A management structure where decisions are made by a few key individuals or a central body within the organization.

Support Department

A segment within an organization that does not directly add to profit but provides essential services for other departments.

Profit Center

A segment or department within a business that is responsible for generating its own revenue and profit, assessed separate from other areas of the company.