Cost Saving Technologies Result in an Increase in Economic Profits

question 89

True/False

Cost saving technologies result in an increase in economic profits in both the short run and the long run.

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Definitions:

Profit Center

A segment or division within a company that is responsible for generating its own revenue and profit, tracked separately for performance analysis.

Responsibility Accounting System

A system of accounting that tracks financial performance and costs at the level of individual responsibility centers, encouraging managerial accountability.

Direct Expenses

Expenses directly linked to a specific product, service, or project, like materials and work.

Profit Center

A business unit or division that is responsible for generating its own revenue and profit, often evaluated independently of other units.