​Under Which of the Following Conditions Would a Cost Center

question 17

Multiple Choice

​Under which of the following conditions would a cost center be the best option?

• A)​Always,since they are largely run on their own
• B)Never,since they require a high degree of the firm's attention
• C)As long as the cost of monitoring is low
• D)​As long as the benefits from monitoring are low

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Definitions:

Profit-maximizing

The process by which a firm determines the price and output level that generates the most profit.

MR

Marginal Revenue, which is the extra revenue that an organization receives from selling one more unit of a product.

Nominal Wage Rate

The amount of money paid per hour, day, or other unit of work, without adjusting for inflation.

Profit-maximizing

The method or approach of modifying production and sales to maximize profits.