Critics Argue the Use of _____ Can Encourage Agencies to Ignore

question 81

Multiple Choice

Critics argue the use of _____ can encourage agencies to ignore cost accounting systems and avoid media such as direct mail and sales promotions.

• A)percentage charges
• B)fixed fee arrangements
• C)cost-plus agreements
• D)the commission system
• E)the objective-and-task compensation system

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Definitions:

Marginal Cost

The incremental expense incurred when a business produces another item of its product line.

Marginal Cost

The elevation in total spending caused by the assembly of one additional unit of a product or service.

Average Cost

It refers to the total cost divided by the number of goods or services produced.

Monopolist

A sole provider of a good or service in a market, facing no direct competition, which often results in the power to set prices.