Variance Analysis Would Be Appropriate to Measure Performance in

question 70

Multiple Choice

Variance analysis would be appropriate to measure performance in

• A)profit centers.
• B)investment centers.
• C)cost centers.
• D)all of the above.

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Definitions:

Induced Consumption

The part of consumer spending that increases when disposable income rises and decreases when disposable income falls.

Disposable Income

The amount of money left for spending and saving after income taxes have been deducted.

Autonomous Consumption

The level of consumption that does not change with fluctuation in income; it is the consumption level when income is zero.

Consumption

The use of goods and services by households, representing one of the primary components of gross domestic product (GDP).