A Responsibility Centre for Which a Separate Measure of Revenues

question 57

Multiple Choice

A responsibility centre for which a separate measure of revenues and/or costs is obtained is called a(n)

• A) accounting centre.
• B) segment.
• C) contribution centre.
• D) quality control centre.

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.

Natural Monopoly

A market situation where due to high fixed costs or unique production processes, one provider can supply a product or service more efficiently than multiple competitors.

Average Total Cost

The total cost of production divided by the total output or quantity of goods produced.

Downward-sloping Market Demand Curve

This concept depicts the inverse relationship between price and quantity demanded in a market, indicating that higher prices typically lead to lower quantities demanded, and vice versa.