In a Profit Center,the Manager Has Responsibility and Authority for Making

question 25

Multiple Choice

In a profit center,the manager has responsibility and authority for making decisions that affect:

• A)only costs.
• B)only assets.
• C)both costs and assets.
• D)both costs and revenues.

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Definitions:

EOQ

Economic Order Quantity; a model used in inventory management to determine the optimal order size that minimizes total holding costs and ordering costs.

Setup Cost

The expenses incurred in preparing equipment or processes for a production run or the start of an operation.

Holding Cost

The expenses associated with storing inventory over a period of time, including warehousing, insurance, spoilage, and obsolescence costs.

Net Requirements

The total demand for a product minus the quantity already on hand or on order, indicating the actual quantity needed to meet demand.