An Investment Center Manager's Performance Can Be Based on

question 43

Multiple Choice

An investment center manager's performance can be based on

• A)the same methods as managers of cost centers.
• B)the same methods as managers of profit centers.
• C)residual income.
• D)All of these answer choices are correct.

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Definitions:

Long Run

A timeframe in economic analysis where all inputs can be adjusted, allowing for the analysis of long-term strategic planning.

This Firm

A term often used in economic models or discussions to represent a generic company or business under analysis.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Opportunity Costs

The penalty of not opting for the next superior alternative while making a decision.