A Type of Responsibility Center Which Is Typically Established Whenever

question 73

Multiple Choice

A type of responsibility center which is typically established whenever an organizational unit has control over both its resources and its products or services is a(n)

• A) investment center.
• B) revenue center.
• C) expense center.
• D) profit center.
• E) standard cost center.

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Definitions:

Promissory Note

A legal document in which one party promises to pay a specified sum of money to another party under agreed-upon terms.

Discounted

The reduction of the nominal price of goods, services, or financial instruments.

Proceeds

Proceeds refer to the total amount of money received from a transaction, such as the sale of goods, assets, or securities.

Compounded Quarterly

Compounded quarterly refers to the method of calculating interest where the interest is added to the principal at the end of each quarter, resulting in interest being earned on previously accumulated interest.