A cost center can be asked to achieve one of two typical objectives. A cost center can either minimize costs for a given output or it can:
A. maximize revenue for a given price.
B. maximize output for a given budget.
C. minimize output for a given budget.
D. maximize returns for a given budget.
Answer: B
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For the following question, assume the following facts:
(1 ) Chase (which is located in the United States) has a 20% reserve requirement imposed by the government. (2 ) Bank of Germany has no reserve requirements. (3 ) Both banks may invest at an 8% interest rate. (4 ) Both banks have fixed costs of $3 per deposit made. What is the difference between the minimum interest rates each bank can offer and still make a profit if the deposit is $500 for 1 year? A) 0 - Both banks can offer the same rate. B) 1% C) 1.6% D) 0.4% E) 20%
When some forms of money start to pay interest, then along with a rise in real output it takes a ________ rise in the market interest rate than before to hold the demand for money equal to its supply, which is to say that the LM curve has become
________. A) larger, steeper B) larger, flatter C) smaller, steeper D) smaller, flatter
Suppose the U.S. dollar price of the Japanese yen decreases. Given this information, which of the following is correct?
A) The dollar has appreciated. B) The dollar has depreciated. C) The yen has appreciated. D) The yen price of the dollar decreased.
A solution to the budget-gaming problem is
a. Remove all kinks from the compensation schedule b. Use a straight line pay for performance function c. Do not base compensation on meeting a particular budget goal d. All of the above