The Manager of Center C Is Only Responsible for Generating

question 103

Multiple Choice

The manager of Center C is only responsible for generating and processing online orders of a large retailer.What type of responsibility center is Center C?

• A)Discretionary cost center
• B)Profit center
• C)Revenue center
• D)Investment center

Identify characteristics and accounting treatments for various types of investments, including held-to-maturity, trading, and available-for-sale securities.

Distinguish between equity and debt securities and their impact on financial statements.

Describe the impact of investment activities on cash flows and financial ratios.

Know the accounting treatments for interest and dividends received from investments.

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Definitions:

Utility

A measure of satisfaction, usefulness, or pleasure derived from consuming goods and services.

Budget Constraint

A limit on the consumption bundles that a consumer can afford given the prices of goods and the consumer's income.

Utility

The satisfaction or benefit derived from the consumption of goods and services.

Optimal Consumption Bundles

Combinations of goods and services that provide the highest utility to a consumer given his or her preferences and budget constraints.