What Responsibility Accounting System Would Be Developed for Operations in a Continuous

question 42

Multiple Choice

What responsibility accounting system would be developed for operations in a continuous improvement environment?

• A)financial-based responsibility accounting
• B)functional-based responsibility accounting
• C)activity-based responsibility accounting
• D)strategy-based responsibility accounting

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Definitions:

Marginal Revenue

Marginal revenue is the additional income generated from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a good or service, reflecting how total cost changes with output variation.

Monopoly

is a market structure characterized by a single seller dominating the entire market by selling a unique product or service.

Predatory Pricing

A competitive strategy involving setting prices at very low levels with the intent to eliminate competition, potentially leading to monopoly pricing power once competitors are driven out.