A Segment Margin Income Statement Is a Measure of Performance

question 10

Multiple Choice

A segment margin income statement is a measure of performance in which type of responsibility center?

• A) Cost center
• B) Profit center
• C) Mail center
• D) Investment center

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Definitions:

Price Taker

A buyer or seller that is unable to influence the market price of a product or service.

Marginal Revenue Curve

A graphical representation showing how the revenue from selling one more unit of a good or service changes as production volume changes.

Price-searcher Firm

A company that has the ability to set the price for its products because it does not face perfect competition.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of product.