When Managers Are Held Responsible for Costs but the Input-Output

question 160

Multiple Choice

When managers are held responsible for costs but the input-output relationship is not well specified, a(n) ________ is established.

• A) standard cost center
• B) revenue center
• C) discretionary cost center
• D) asset center

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Definitions:

Cash Dividend

A financial distribution from a firm's profits to its investors, typically provided as cash.

Stockholders’ Equity

The ownership claim of shareholders on total assets. It is to a corporation what owner’s equity is to a proprietorship.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividend arrearages in full before any dividends can be issued on other shares.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.