An Operating Unit of an Organization Is Called a Revenue

question 106

Multiple Choice

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

• A) only for costs.
• B) for selling a product.
• C) for all costs and revenues.
• D) for investments in assets.

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Definitions:

Restaurant Industry

A sector of the economy that is concerned with the preparation, sale, and service of food and beverages to customers.

Quantity

The amount or number of a material or immaterial good considered as a unit or units.

Economic Profits

Profits after subtracting both explicit and implicit costs from total revenue, representing earnings that exceed the opportunity cost of all resources.

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical, allowing for competition on factors other than price.