The Source of Diminishing Returns Is

question 81

Multiple Choice

The source of diminishing returns is

• A)The efficiency that results from workers specializing in one aspect of production.
• B)The fact that anytime you increase labor you get more output.
• C)The inefficiency that results from the fact that capital is fixed.
• D)The when each worker is equally capable, each worker adds to production exactly the same as the previous one.

Recognize the differences between profit, cost, and investment centers in terms of responsibility and performance evaluation.

Understand the significance of transfer pricing and its implications on divisional performance.

Learn the computation of net operating income and its relevance in managerial accounting.

Grasp the importance of considering opportunity costs in setting transfer prices and evaluating performance.

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Definitions:

Modelling

The process of representing or simulating a real-life situation with a mathematical model or physical representation.

Behavioural Rehearsal

A therapy technique involving the practice of positive behaviors in a safe environment to enhance their use in real-world situations.

Aversion Therapy

Aversion therapy is a form of psychological treatment in which the patient is exposed to a stimulus while simultaneously being subjected to some form of discomfort, with the aim of creating a negative association to reduce or eliminate a problematic behavior.

Cognitive Therapy

A form of psychotherapy that emphasizes the role of thought processes in the development and maintenance of psychological disorders.