Which of the Following Is NOT Descriptive of Responsibility Centers

question 100

Multiple Choice

Which of the following is NOT descriptive of responsibility centers?

• A) They are used to the extent that they can isolate specific functional units such as R&D.
• B) Each responsibility center has its own budget and is evaluated on its use of budgeted resources.
• C) The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan.
• D) The center uses resources to produce a service or a product.
• E) A responsibility center is headed by the manager responsible for the center's performance.

Recognize how a change in the number of consumers affects market demand.

Understand how changes in consumer income affect demand for goods.

Identify the factors that lead to increases or decreases in market demand.

Comprehend how expectations about future prices affect current demand.

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Definitions:

Average Total Cost

Calculated by dividing total cost by the quantity of output produced; it's the cost of producing the average unit of output.

Demand Schedule

Shows how much of a given product a household would be willing to buy at different prices for a given time period.

Negative Profits

Financial losses that occur when a business's total costs exceed its total revenues, also known as net loss.

Industry Demand Curve

A graph showing the relationship between the price of a good and the total quantity demanded across the entire market.