Since a Profit Centre Is an Independent Entity, All Fixed

question 50

True/False

Since a profit centre is an independent entity, all fixed costs are controllable by its manager.

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Definitions:

Output

The total amount of goods or services produced by a business, industry, or economy.

Economic Efficiency

A situation where resources are utilized in the most optimal manner, producing the desired output with minimum waste or expense.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Consumer Surplus

Consumer surplus is the difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.