If Costs Are Used as a Basis for Pricing,then Charging

question 23

Multiple Choice

If costs are used as a basis for pricing,then charging user divisions for unused capacity could result in:

• A)chaos.
• B)confusion.
• C)the downward demand spiral.
• D)misallocations.

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Definitions:

General Partner

An owner of a partnership who has unlimited liability and is responsible for managing the business.

Contributes Capital

The act of providing financial resources or assets to a business or investment with the expectation of gaining a return.

Limited Partnership

A business partnership with one or more general partners who manage the business and assume liability, and one or more limited partners who contribute capital and face limited liability.

General Partner

A type of owner in a partnership who has unlimited personal liability and who is actively involved in managing the business.