When Evaluating the Performance of a Cost Center, the Appropriate

question 70

Multiple Choice

When evaluating the performance of a cost center, the appropriate measurement technique would be:

• A)actual costs incurred compared to budgeted costs.
• B)actual segment margin compared to budgeted segment margin.
• C)comparison of actual and budgeted return on investment (ROI)based on segment margin and assets controlled by the segment.
• D)None of the answers are correct.

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Definitions:

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country.

Quantity Consumed

The total amount of a good or service that is used or ingested over a specific period of time.

Foreign Exchange

The marketplace for trading currencies, enabling conversion from one currency to another, essential for global trade and investment.

Black Market

An illegal trading environment where goods or services are exchanged in violation of government regulations.