Support Department Costs Are Normally Accounted for as Which of the Following

question 45

Multiple Choice

Support department costs are normally accounted for as which of the following responsibility center classifications?

• A)profit center
• B)revenue center
• C)investment center
• D)cost center

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Definitions:

Economies of Scale

The cost advantage achieved by an enterprise when production becomes efficient, as costs can be spread over a larger amount of goods.

Market Demand

The total quantity of a good or service that all consumers are willing and able to purchase at various prices during a given period.

Nondiscriminating Pure Monopolist

A monopolist who sells their product at the same price to every customer, not charging different prices to different buyers.

Industry Demand Curve

A graph showing the relationship between the price of a good and the total amount of the good all consumers are willing to purchase within a specific industry.