Exhibit 20-7 ​ Refer to Exhibit 20-7. Which of the Following Graphs Represents

question 92

Multiple Choice

Exhibit 20-7 ​

Refer to Exhibit 20-7. Which of the following graphs represents a budget constraint of a consumer whose income is $120?

• A)(1)
• B)(2)
• C)(3)
• D)(1)and (2)
• E)This cannot be determined from the information provided.

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Definitions:

Indirect Expenses

Costs that are not directly tied to the production of goods or services, such as administrative salaries, rent, and utilities.

Cost Center

A business unit or department within an organization that does not directly generate revenue but incurs costs, and its performance is evaluated based on cost control.

Investment Center

An investment center is a business unit or division within an organization that is responsible for its own revenues, expenses, and assets, and its performance is often evaluated based on return on investment (ROI) or other profitability ratios.

Profit Center

A business unit or department within an organization that is responsible for generating its own revenue and profit.