The Fact That the Average Price of a Gallon of Gasoline

question 11

Multiple Choice

The fact that the average price of a gallon of gasoline is much higher in England than in the U.S. leads to which of the following predictions?

• A)Drivers in England will buy cars with poorer gas mileage than will drivers in the U.S.
• B)Drivers in England will drive a greater number of miles than will drivers in the U.S.
• C)Drivers in the U.S. will take fewer trips than will drivers in England.
• D)Large cars with poor gas mileage will be less popular in England than in the U.S.

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Definitions:

Profit Center

A profit center is a branch or division of a company that is treated as a separate unit for the purpose of assessing its revenue-generating ability and profitability.

Department Manager

A professional who oversees the operations and employees of a specific department within a company, ensuring goals and objectives are met.

Authority

The authority or capacity to command, make choices, and ensure compliance.

Responsibility Accounting Reports

Financial reports that measure the financial performance of different segments or departments of an organization, attributing revenues and expenses to the managers responsible.