Is Any Cost That Cannot Be Affected by the Management

question 138

Multiple Choice

is any cost that cannot be affected by the management of a responsibility center within a given time span.

• A) Controllable cost
• B) Opportunity cost
• C) Quality cost
• D) Uncontrollable cost

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Definitions:

Minimum Efficient Scale

The smallest production quantity at which the long-run, total average cost is minimized.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, leading to a reduction in the per-unit cost.

Production Process

A sequence of steps or operations involved in the manufacture of goods or the delivery of services.

Minimum Efficient Scale

The smallest scale of production a firm can achieve while still taking full advantage of economies of scale.