A Unit of a Business That Generates Revenues and Incurs

question 4

Multiple Choice

A unit of a business that generates revenues and incurs costs is called a:

• A)Performance center.
• B)Profit center.
• C)Cost center.
• D)Responsibility center.
• E)Expense center.

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Definitions:

Capital Goods

Physical assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products produced for purchase by individuals and households for personal use, such as clothing, food, and electronics.

Industrialize

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Market-Oriented Economy

An economy in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.