Frito-Lay Is a Subsidiary of PepsiCo

question 94

Multiple Choice

Frito-Lay is a subsidiary of PepsiCo.It qualifies as a(n)

• A)cost center.
• B)investment center.
• C)profit center.
• D)revenue center.

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Definitions:

Marginal Cost

The cost associated with producing an additional unit of a product or service.

Diminishing

Refers to a reduction or decrease over time.

Marginal Product

Marginal product refers to the additional output resulting from using one more unit of a production input, holding all other inputs constant.

Fixed Costs

Costs that remain consistent regardless of production or sales volume, including rent, salaries, and insurance fees.