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A Component of an Enterprise That May Earn Revenues and Incur

question 5

Multiple Choice

A component of an enterprise that may earn revenues and incur expenses, and about which management evaluates separate financial information in deciding how to allocate resources and assess performance is a(n) :


Definitions:

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a good or service.

Total Revenue

Total Revenue, in a rephrased definition, represents the aggregate earnings a company receives from selling its products or services, before any expenses are subtracted.

Market Price

The going rate at which a particular market offers to buy or sell an asset or service.

Average Revenue

The revenue earned per unit of output sold; calculated by dividing the total revenue by the number of units sold.

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