To Achieve Maximum Benefits at Minimum Cost, a Management Control

question 118

Multiple Choice

To achieve maximum benefits at minimum cost, a management control system must foster _____.

• A)goal congruence and employee motivation
• B)motivation and responsibility accounting
• C)responsibility accounting and managerial effort
• D)managerial effort and goal congruence

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, leading to a market balance.

Marginal Revenue

The extra profit made by selling an extra unit of a product or service.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, typically downward sloping from left to right.

Elasticity Coefficient

A numeric value that measures the responsiveness of the quantity demanded or supplied of a product to changes in one of its determinants, such as price.