The ________ All of the Different Positions That a Firm

question 61

Multiple Choice

The ________ all of the different positions that a firm can adopt with regard to adding value to the product and low cost assuming that its internal operations are configured efficiently to support a particular position.

• A) economies of scale are
• B) diminishing returns imply
• C) efficiency frontier shows
• D) value creation scale shows

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Definitions:

Profit Center

A branch or division of a company that is responsible for its own revenues and expenses, and thus its own profitability.

Generates Revenues

The process of creating income for a business through various activities such as sales, services, and investments.

Cost Center

A department or segment within a business that does not directly generate revenue but incurs costs, used for performance evaluation and budgeting.

Revenue Center

A segment of a business responsible for generating revenue through its operations and sales activities.