Which of the Following Statements Is Correct About the Functions

question 12

Multiple Choice

Which of the following statements is correct about the functions that fall within various responsibility centers?

• A)A revenue center manager is responsible for more functions than a profit center manager is.
• B)A revenue center manager is responsible for fewer functions than a profit center manager is.
• C)A revenue center manager is responsible for the same number of functions as a profit center manager is.
• D)A revenue center manager is not responsible for any functions;only the profit center manager is responsible for functions.

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Definitions:

Desired Rate

The target interest rate set by a company or investor for a specific investment or project.

Internal Rate

Often referred to as Internal Rate of Return (IRR), it's a metric used in financial analysis to estimate the profitability of potential investments.

Compound Interest

A method of interest computation that involves charging interest on the original loan or deposit amount as well as on any interest that has built up during past periods.

Time Value

The principle that having money in the present is more valuable than having the same sum in the future because of its ability to generate earnings.