The Relationship Between the Acquire Services and Disburse Cash Events

question 35

Multiple Choice

The relationship between the Acquire Services and Disburse Cash events is modeled as ________ to reflect the common situation in which the organization obtains the use of a specific service for a particular period of time and makes a payment each month for the services it acquired and used that month.

• A) 1:1
• B) 1:N
• C) M:N
• D) none of the above

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to a decrease in per unit cost with an increase in production.

Least Cost

The process of minimizing expenses involved in producing a good or service while maintaining its quality and efficiency.

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to minimizing its costs.