Excite Enterprises, a Corporation of Amusement Parks, Uses an Accounting

question 310

Multiple Choice

Excite Enterprises, a corporation of amusement parks, uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of

• A) outsourcing.
• B) functional reassignment.
• C) core competencies.
• D) benchmarking.

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Definitions:

Marginal Revenue

The additional income earned by selling one more unit of a good or service, crucial for determining optimal output levels.

Total Costs

The sum of all expenses associated with the production and delivery of goods or services, encompassing both fixed and variable costs.

Average Total Cost

This refers to the total cost of production divided by the number of units produced, inclusive of fixed and variable costs.

Marginal Cost

The cost incurred by producing one additional unit of a good or service.