In a Profit Center, the Manager Has Responsibility and Authority

question 185

Multiple Choice

In a profit center, the manager has responsibility and authority for making decisions that affect

• A) long-term liabilities
• B) assets
• C) investments
• D) costs

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Support Prices

Government-authorized price levels for agricultural products designed to stabilize farmers' incomes by buying surplus or offering price guarantees.

Ceiling Prices

Maximum legal prices set by governments for essential goods or services, intended to prevent prices from rising above a certain level during shortages or periods of high inflation.

Sales Tax

A tax on sales or on the receipts from sales.