An Operating Unit That Is Responsible for Only Costs Is

question 29

Multiple Choice

An operating unit that is responsible for only costs is commonly referred to as a(n) :

• A) cost center.
• B) revenue center.
• C) profit center.
• D) asset center.

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Definitions:

Incremental

Describes a process of making changes or improvements in small, gradual steps rather than large, significant leaps.

Entity

Something that exists as a particular and discrete unit, often referred to in philosophy, law, and technology.

Internal

Existing or situated within the confines of an object, individual, or group, often referring to inner qualities or operations.

External

Originating from or existing outside oneself or the subject being considered, often influencing it from the outside.