Funds That Are Used to Account for Activities Similar to Those

question 139

Multiple Choice

Funds that are used to account for activities similar to those often engaged in by profit-seeking businesses are:

• A) Proprietary funds.
• B) Special revenue funds.
• C) Capital project funds.
• D) Agency funds.

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Definitions:

Marginal Profit

The increase in profit that results from selling one additional unit of a product.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed that buyers are willing to pay, capturing the entire consumer surplus.

First-degree Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed, tailored to the buyer's willingness to pay.

Incremental Revenue

The additional income received from selling one more unit of a product or service.