Which of the Following Is NOT a Benefit of the Costs

question 33

Multiple Choice

Which of the following is NOT a benefit of the costs of support departments being allocated to production departments?

• A)The allocation assists producing departments' use of support departments at a more efficient level.
• B)Allocation of support department costs encourages managers of production departments to monitor performance of the support department.
• C)The allocation helps each department select the correct level of support service consumption.
• D)Management will use the information to support out-sourcing all support services.

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Definitions:

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product or service, as opposed to charging different prices based on consumer attributes or willingness to pay.

Profit-Maximizing

is the process of determining the best output and pricing levels to achieve the highest profit.

Demand Curve

A graphical representation showing how the quantity demanded of a good or service varies with its price.

Economic Profit

The difference between the total revenue earned by a business and the total costs, including both explicit and implicit costs.