What Is the Graphical Effect of Technological Change

question 120

Multiple Choice

What is the graphical effect of technological change?

• A)The SRAC curves would shift down and the LRAC curve would shift up.
• B)The SRAC curves would shift up and the LRAC curve would shift down.
• C)The SRAC curves and the LRAC curve would shift up.
• D)The SRAC curves and the LRAC curve would shift down.

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Definitions:

Responsibility Accounting

A system of accounting that segments financial information by areas of responsibility, allowing managers to be held accountable for their areas' financial performance.

Managers

Managers are individuals in an organization responsible for directing and overseeing the work of a group of people towards the achievement of goals.

Residual Income

The income that exceeds the minimum rate of return, often used as a measure of the performance of investment centers within organizations.

Net Operating Income

Profit generated from a company's normal business operations, excluding deductions of interest and taxes.