Which of the Following Is an Example of a FUNCTIONAL

question 192

Multiple Choice

Which of the following is an example of a FUNCTIONAL cost account?

• A) Auto repairs
• B) Advertising
• C) Taxes
• D) Social Security
• E) Any of these-because functional accounts include any costs which are used in the normal preparation of a company's operating statement.

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Definitions:

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied changes infinitely with any change in price.

Pure Competition

A market structure characterized by a large number of buyers and sellers dealing in perfectly substitutable goods or services.

Market Entry

Refers to the process or strategy employed by an organization to start selling its products or services in a new market or industry segment.

Profit Maximization

The technique used by entities to determine the most profitable pricing and output levels.