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

question 207

Multiple Choice

In a profit center, the department manager has responsibility for and the authority to make decisions that affect

• A) not only costs and revenues, but also assets invested in the center
• B) the assets invested in the center, but not costs and revenues
• C) both costs and revenues for the department or division
• D) costs and assets invested in the center, but not revenues

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Definitions:

Elasticity of Demand

Estimating how much the demand for a product fluctuates in response to changes in its price.

Resource Markets

Markets in which business firms demand factors of production (for example, labor, capital, and natural resources) from household suppliers. The resources are then used to produce goods and services. These markets are sometimes called factor markets or input markets.

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of selling at a specific price.

Inversely Related

A term used to describe a situation in which one variable increases as another variable decreases.