Which Manager Is Normally Held Responsible for Fixed Cost Volume

question 54

Multiple Choice

Which manager is normally held responsible for fixed cost volume variances?

• A) Production supervisor
• B) Upper-level marketing managers
• C) Plant manager
• D) Purchasing agent

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Definitions:

Monopolistically Competitive

Refers to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, or insurance.

Short Run

A period in economics during which at least one input is fixed, limiting the ability of a firm to adjust its production levels.

Monopolistically Competitive

refers to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and promotional differentiation.