A Profit Center Is the Responsibility Center That Is Only

question 105

True/False

A profit center is the responsibility center that is only responsible for costs.

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Definitions:

Utility Function

A mathematical representation of how consumer preference over a set of goods and services translates into choices given constraints, like income.

Tape Recorders

Devices used for recording sound onto magnetic tape.

Inferior Good

A type of good for which demand decreases as the income of individuals increases, in contrast to normal goods.

Rational Consumer

An economic concept where consumers aim to maximize their utility or satisfaction from their available resources.