An Operating Unit of an Organization Is Called a Cost

question 52

Multiple Choice

An operating unit of an organization is called a cost center if it is responsible:

• A) only for costs.
• B) only for revenues.
• C) for costs and revenues.
• D) for investments in assets.

---

Definitions:

Past Due Taxes

Taxes that have not been paid by the date they are due, potentially incurring penalties and interest.

Title Search

An examination of public records to confirm a property’s legal ownership and find out what claims or liens are on the property.

Salvage Proceeds

The amount of money received from selling an asset after its useful life is over or it has been damaged beyond repair.

Start-Up Costs

Expenses incurred during the process of establishing a new business or project.