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In Designing an Effective Management Control System for a Multinational

question 63

Multiple Choice

In designing an effective management control system for a multinational corporation, the accountant should measure factors appropriate for each unit's level of responsibility. Which of the following measures would be appropriate for evaluating the performance of a cost center?


Definitions:

Marginal External Cost

The additional cost imposed on society that is not accounted for by the producer as output increases.

Marginal Social Cost

The cost to society of producing one additional unit of a good or service, including both the private costs and any external costs.

Oil Refinement

The process of transforming crude oil into useful products like gasoline, diesel, and jet fuel through various physical and chemical treatments.

Pollution Fee

A financial charge applied to entities that emit pollutants, intended to discourage environmental pollution by making it economically costly.

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