As a Firm Moves to Higher Isocost Lines

question 266

Multiple Choice

As a firm moves to higher isocost lines,

• A)its profits increase.
• B)its revenue increases.
• C)its input price ratio increases.
• D)its total cost increases.

---

Definitions:

Consolidated

Combined financial statements that present the assets, liabilities, and operating results of parent companies and their subsidiaries as a single entity.

Diversified

A risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce risk.

Responsibility Centers

These are parts or segments of a business for which individual managers are responsible, usually in terms of costs, revenues, or investment.

Cost Center

A business unit or department within an organization that does not directly generate revenue but incurs costs, used for budgeting and cost control.